Scenting gold in the wireless marketplace, Internet superstore Buy.com Inc. Thursday acquired e-tailer Telstreet.com for about $7.9 million in stock.
Telstreet.com sells wireless phones, service and accessories.
Buy.com will issue about 1.6 million shares of its common stock in exchange for all outstanding capital stock and options of the privately-held Indianapolis-based company.
Buy.com said the acquisition will add a new product category to its existing offerings and will allow the company to enter the wireless market on a global level. Buy.com already offers computer products, software, consumer electronics, books, music, videos and DVDs, games, golf, travel and clearance items.
“The wireless category is very attractive in terms of growth rates and the fit with our customer demographic,” said Greg Hawkins, president and chief executive officer of Buy.com.
Hawkins added the acquisition follows Buy.com’s global wireless strategy and provides the company with rapid entry to the U.S. wireless market. Earlier this year, Buy.com and Buy.com Australia jointly launched an Australian wireless store. Hawkins said the Telstreet acquisition, combined with the wireless store, positions Buy.com to take a leading role in the global e-commerce wireless marketplace.