PFSweb: finalizes the sale of LiveArea Business to Merkle (form 8-K)
PFSweb finalizes sale of LiveArea Business to Merkle
Allen, TX – August 27, 2021 – PFSweb, Inc. (NASDAQ: PFSW), a global business services company, announced that it has completed the sale of LiveArea, its global customer experience and sales agency business unit , to Merkle, Inc., a leading technology-based, data-driven Customer Experience Management (CXM) company within the Dentsu Group’s international business, Dentsu International (Tokyo: 4324).
Merkle acquired LiveArea for total gross consideration of $ 250 million, which is expected to generate net proceeds of approximately $ 185 million to $ 200 million, after taking into account estimated taxes and transaction-related expenses. PFSweb used a portion of the net proceeds to fully repay its senior finance facilities.
“Under Jim Butler’s leadership, the LiveArea team has made tremendous strides in returning the business to growth over the past two years,” said Mike Willoughby, CEO of PFSweb. “We are confident that they will accelerate their momentum as they integrate into the Merkle team and continue to support their customers with an even more comprehensive set of digital business capabilities. I would like to thank Jim and his team for their contribution to our business and to our customers. ‘
Willoughby concluded: “After successfully finalizing the sale of LiveArea, we will continue to work to maximize the growth of PFS through high quality customer service and continued operational efficiency. We are proud of the solid foundation we have built and plan to provide further updates on our second quarter performance and business outlook for the remainder of the year, including the significant peak in vacations. future.’
As announced on August 9, 2021, PFSweb will account for the divestment of LiveArea as a discontinued operation in its next second quarter earnings report, which has been delayed by the work required to complete this transaction and prepare the required financial reports and other related requirements. . for this assignment, including NASDAQ listing requirements. The company is working to complete the accounting process with the goal of filing Form 10-Q with the Securities and Exchange Commission by the NASDAQ deadline of October 11, 2021 for submission of the company’s shares and plan. to be in compliance. with registration requirements.
Raymond James acted as exclusive financial advisor to PFSweb in the transaction. FisherBroyles, LLP acted as legal counsel to PFSweb in the transaction.
Exploration of strategic alternatives
As announced on July 6, 2021, PFSweb has engaged Raymond James to lead the exploration of a full range of strategic alternatives for its remaining business, PFS. This broader exploration process is still ongoing.
“The finalization of this LiveArea transaction represents an important step in our process of strategic alternatives,” said Monica Luechtefeld, Chairman of the Board of Directors of PFSweb. “We will continue to work with our advisors to assess a wide range of alternatives in order to optimize shareholder value.”
The company has not established a timeline for the completion of this strategic review process, and it does not intend to comment further on the review process unless or until a specific transaction. that is
approved by its board of directors or shareholders, the review process has been completed or it has otherwise determined that further disclosure is appropriate or required by law.
This press release contains forward-looking information under the Private Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties, which could cause actual results to differ materially from forward-looking information. You can identify these forward-looking statements by words such as “may”, “will”, “should”, “should”, “could”, “expect”, “anticipate”, “believe”, “have the intention to “,” plan “,” potential “,” plan “,” seek “,” strive “,” predict “,” continue “,” target “,” estimate “and other similar expressions. These forward-looking statements involve risks and uncertainties and may include assumptions about our future performance, including the impact of the COVID-19 pandemic on our business, results of operations and global economic conditions. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that these expectations will actually be achieved. The Company’s annual report on Form 10-K, as amended, for the fiscal year ended December 31, 2020 and any subsequent amendment or quarterly report on Form 10-Q identify certain factors that could cause the results actuals differ materially from those projected in forward-looking statements made and investors are urged to review the Company’s periodic reports and the risk factors described therein. The Company assumes no obligation to publicly update any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently consider to be material or that are not currently known.
PFS, the business unit of PFSweb, Inc. (NASDAQ: PFSW) is a leading provider of e-commerce order fulfillment. We facilitate every operational step of an e-commerce order in support of DTC and B2B retail brands and specialize in health and beauty, fashion and apparel, jewelry and consumer goods. packed. Our scalable solutions support personalized pick / pack / shipping services that respect the brand’s ethics with every order. A proven order management platform, along with high quality customer service, strengthens our operation. With over 20 years as an industry leader, PFS is the BPO of choice for brand-centric businesses and major brands, such as L’Oréal USA, Champion, Pandora, Shiseido Americas, Kendra Scott, the United States Mint, and many more. . The company is headquartered in Allen, Texas with other locations around the world. For more information, visit www.pfscommerce.com or ir.pfsweb.com for investor information.
Cody Slach and Jackie Keshner
Investor Relations Gateway
PFSweb inc. published this content on August 27, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 27 Aug 2021 19:41:45 UTC.