Software retailer Egghead Inc, which announced a massive restructuring in February that included closing nearly half of its 156 stores (CI No 3,091), says it has signed an agreement to acquire Surplus Software Inc for 5.6 million newly issued common shares of Egghead stock. Based on current prices, the deal is valued at $31.5m, including the repayment of $5.6m of Surplus debt. Surplus, which conducts direct marketing business under the name Surplus Direct, was founded in 1992 and sells previous version hardware and software through its website. Its sales for the nine months through February were $35m, incurring a net loss of $1.2m during the period. Surplus will operate as a wholly-owned subsidiary of Egghead and will keep its Hood River, Oregon-based management team intact.
