DSW TO ACQUIRE E-COMMERCE RETAILER EBUYS
Leading footwear and accessories retailer DSW has entered into a definitive agreement to acquire Ebuys, Inc., a leading e-commerce off-price footwear and accessories retailer with a presence in North America, Europe, Australia and Asia. The transaction, which is expected to close in the next 30 days, supports DSW’s efforts to grow its market share within footwear and accessories domestically and internationally.
The purchase price includes an upfront payment of $62.5 million as well as future payments contingent on the performance of Ebuys, Inc. DSW anticipates that the impact of the acquisition, excluding purchase accounting adjustments and transaction costs, will be modestly accretive to earnings per share in fiscal 2016.
Ebuys, Inc. will continue to operate as a distinct business within DSW and maintain its offices in San Diego, California, and Antioch, Tennessee. David Duong will continue to lead the team as CEO of Ebuys, Inc
“The acquisition of Ebuys, Inc. represents a unique opportunity to add a business to the DSW Inc. portfolio that will strategically scale our off-price sourcing capabilities, expand our presence into digital marketplaces, and create opportunities to serve international customers online,” said Roger Rawlins, CEO of DSW Inc. “David Duong has built a strong leadership team and developed an excellent off-price e-commerce model that complements DSW’s growth strategy. Together, we will serve our combined customer base better and achieve our long-term growth goals.”
“I admire the DSW team and the depth of resources DSW has developed over the years,” added Duong. We’re excited to be part of DSW Inc. and we are confident the new relationship will accelerate our growth and provide significant benefits to our customers, vendors and employees,”
