Under the terms of the deal, online and catalog computer retailer PC Mall will issue 300,000 shares of its stock in exchange for the bulk of the assets of privately held Pacific Business Systems, which operated under the ClubMac and PBS names. Torrance, Calif.-based PC Mall also agreed to pay an undisclosed additional amount based on future sales.
After the deal was announced, shares of PC Mall closed at $4.58, up 18 cents, or slightly more than 4 percent.
According to PC Mall, PBS reported net sales of $84 million for 2001 and has been profitable for 18 years. PC Mall said it expects the acquisition will add to its own earnings in the current fiscal year.
The ClubMac brand will remain, and PBS President Mike McNeil will become general manger of PC Mall's ClubMac division.
"We are excited to have PBS join the PC Mall family of companies," PC Mall CEO Frank Khulusi said in a statement. "We will continue to look for acquisitions that fit our outbound direct marketing strategy and present opportunities to leverage our infrastructure."
PC Mall will also offer employment to ClubMac sales and support staff and acquire ClubMac's customer database, accounts receivable, inventory as well as other assets and intellectual property.