Excite@Home Will Purchase iMall for $425M

Share this article:
Excite@Home said it will buy e-commerce systems firm iMall Inc. for about $425 million in stock, and the Redwood City, CA, company also struck a deal with First Data Corp.'s Merchant Services unit to take advantage of its e-commerce payment processing technologies.


As the new company is envisioned, iMall will continue to operate as an independent unit of Excite@Home. Santa Monica, CA-based iMall sets up merchants with electronic storefronts. It also operates shopping portals that feature its customers.


The agreement combines Excite@Home's consumer traffic, iMall's commerce services and First Data's back-end payment services. Portal and Internet service provider Excite@Home plans to market the First Data/iMall package through @Work, the company's business-to-business unit. The division sells Net access and hosting services.


Excite@Home also hopes its online shopping area will benefit as First Data's financial industry partners begin promoting the new combined e-commerce service and merchants build Web storefronts. First Data, Atlanta, provides transaction processing to businesses, and is one of the largest US third-party processors of credit card transactions.


Under the terms of the iMall acquisition, Excite@Home will issue 8.3 million shares and will assume iMall's outstanding options and warrants. Shareholders who together hold more than 40 percent of the outstanding stock of iMall - including CEO Richard Rosenblatt - have already agreed to vote in favor of the transaction.

This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions