In a major consolidation in the software retail stores business, Minneapolis-based Software Etc Stores Inc has agreement in principle to merge with Babbage’s Inc into a new holding company. The combination will create the nation’s largest consumer software speciality retailer with nearly 700 stores and combined revenues in excess of $500m. Holders of shares of Babbage’s will receive 1.3 shares in the new holding company for each share they own, Software Etc holders will receive one share for each Software Etc they hold, and will come out collectively holding 54% of the new firm. The board is to be drawn equally from each side.
