Ashford.com Acquires Watchnetwork.com
Fresh off the acquisition of Guild.com last month, Ashford.com yesterday acquired online watch retailer Watchnetwork.com, all in hopes of becoming profitable by the end of the year.The acquisition is expected to close by the end of the month.
Ashford.com, Houston, TX, an Internet retailer of fine personal and home décor accessories, adds Watchnetwork's selection of watches and its customer database to its business model. The size of the database was not disclosed.
Watchnetwork, New York, meanwhile, will receive approximately two million shares of Ashford stock at closing, and up to 5.5 million shares if "certain contingencies are satisfied," according to a statement.
"This acquisition will be a key element in our drive to build our relationships with the Swiss watch community and will support our focus on both excellent retail execution and growth in the corporate business," said Kenny Kurtzman, chief executive officer at Ashford.
Last month, Ashford bought Guild.com, Madison, WI, a multichannel retailer of contemporary art. Ashford gained access to Guild's 60,000 customers while Guild received about 8.7 million shares of Ashford's stock.
Also, the Guild deal provided Ashford with $11.5 million in cash.
