GSI Commerce has signed a definitive agreement to acquire Retail Convergence, a Boston, Massachusetts based company that operates RueLaLa.com and SmartBargains.com.
The transaction is valued at up to $350m, including $180m at closing, on a 50% cash and 50% stock basis and an earn-out of up to $170m.
Launched in April 2008, Rue La La is a members-only, e-commerce destination offering premier brands at discount prices during two-day private sale events in the fashion, accessories, footwear, home, jewelry and other emerging merchandise categories.
SmartBargains.com, launched in 1999, is a consumer marketplace for the sale of off-price merchandise across a wide cross-section of categories.
Michael Rubin, chairman, president and CEO of GSI, said: “Rue La La can offer GSI’s clients access to a new way of selling opportunistic inventory in a manner that enhances their brand image and further drives consumer engagement. It is an excellent strategic fit for GSI adding a new growth pillar.”
Ben Fischman, CEO of Retail Convergence will continue to lead Rue La La and SmartBargains.com, reporting to Mr Rubin. Retail Convergence’s team of nearly 200 associates will remain intact following the acquisition, said the company.
