Global Sports to acquire Ashford.com - Brief Article

DSN Retailing Today, Oct 1, 2001

KING OF PRUSSIA, PA. -- Global Sports Inc., a developer of sports-related Internet commerce businesses, announced last month it would acquire Ashford.com, an Internet retailer of luxury goods and corporate gifts, and raised its 2002 sales and earnings forecast. "This acquisition represents a significant step forward in our strategy to expand selectively beyond our initial category of sporting goods," chairman and ceo Michael Rubin said in a statement.

Under terms of the agreement, Ashford.com shareholders will receive 0.0076 of a share of Global Sports common stock and $0.125 cash for each share of Ashford.com common stock. Global Sports expects to issue about 430,000 shares of common stock and pay about $7.1 million in cash in exchange for all of the outstanding shares of Ashford.com. Based on the closing price of Global Sports common stock on Sept. 10, the transaction is valued at about $14.2 million. Global Sports anticipates its sales and pro forma earnings in 2002 will exceed current expectations due to the positive impact from the acquisition. Net revenue is now expected to exceed $200 million, and pro forma operating profit is now expected to exceed $11 million.