Fry's Electronics has agreed to purchase electronics e-tailer Cyberian Outpost for 25 cents a share in cash, or about $7.9 million, the companies have announced. As part of the deal, which requires the approval of Outpost shareholders, Fry's will loan Outpost up to $13 million pay off debts to former suitor PC Connection and other creditors and to continue operations, according to Friday's announcement. Privately held Fry's resumed acquisition talks with Outpost last week after breaking them off earlier in the month. Outpost signed an agreement to merge with PC Connection in May, but that deal foundered last month after Kent, Conn.-based Outpost told PC Connection that it might not meet the net worth requirements of their agreement.
Sunnyvale, Calif.-based Fry's, which operates a chain of electronics stores in California, Texas, Arizona and Oregon, agreed last month to pay $10 million to buy the assets of electronics e-tailer Egghead.com, which filed for Chapter 11 bankruptcy. Despite the deal with Outpost, Fry's officials said the company will continue to pursue its acquisition of Egghead's assets, which must be approved by the bankruptcy court.