Cyberian Outpost to Merge With PC Connection
The deal, announced yesterday, marks the end of independence for yet another Internet-only retailer struggling to survive in a tough economic environment.
The boards of both companies have agreed to a stock swap based on an exchange ratio that will vary with Cyberian Outpost's June-August revenue and the closing price of PC Connection common stock over a 10-day period ending four days before the deal's closing.
"This merger will enable us to more successfully compete in the consumer technology market," said Darryl Peck, who will continue as president/CEO of Cyberian Outpost even after the acquisition closes.
Shareholders of both companies now will decide whether to approve the stock-for-stock merger, which is expected to close in the third quarter.
Based in Kent, CT, 6-year-old Cyberian Outpost last year recorded revenue of $355 million through 1.3 million customers worldwide.
PC Connection, Merrimack, NH, debuted in 1982 and posted revenue of $1.45 billion last year through the sale of IT products to small and medium-sized businesses.