GSI, Innotrac deal is off
E-commerce and multichannel solutions provider GSI Commerce Inc. and e-commerce fulfillment and customer care services provider Innotrac Corp. have agreed to terminate their previously announced merger agreement because of current prevailing market valuations.
In October, GSI said it had signed a definite agreement to acquire Innotrac for $52 million. The deal was supposed to increase GSI's client base, provide expanded infrastructure and capacity, and enable it to initiate a regional distribution strategy for its clients in 2009. In 2007, retail clients accounted for the largest percentage of Innotrac's revenue and included leading brands in apparel, beauty, home and technology.
Neither party has any financial obligation to the other as a result of terminating the deal.