Shares of the global commerce services company PFSweb Inc. (PFSW) has risen 37.38% to $10.40 at the last check in today’s session. In the previous session, PFSweb stock closed at $7.57. Price ranged from $7.36 to $7.61 for PFSW stock. PFSweb traded 2.12 million shares, which was above its 100-day average of 0.13 million shares. PFSW stock climbed after an agreement to sell a business unit.
PFSW has sold what?
PFSweb offers eCommerce services to major manufacturers and retailers. PFSW manages the online shopping experience for their customers. PFSW’s two business units, LiveArea and PFS, serve Fortune 500 organizations and household brands such as Procter & Gamble, L’Oréal USA, Champion, Pandora, Ralph Lauren, Shiseido Americas, and the United States Mint, among others. PFSW makes online shopping convenient and more brand-centric for these companies across traditional and online channels. PFSW has offices around the world, with its headquarters in Allen, TX.
As announced by PFSW today, Merkle has been acquiring LiveArea, PFSweb’s global customer experience and commerce agency business unit.
- PFSW inked the agreement with the company within the Dentsu International, a company focused on customer experience management (CXM) using data-driven technology.
- Merkle has agreed to purchase LiveArea for $250 million, with net proceeds expected to range from $185 million to $200 million, after factoring in estimated taxes and transaction-related expenses.
- In addition to using existing cash on hand to pay off its senior financing facilities in full, PFSW expects to utilize a portion of the net proceeds of the transaction following the completion of the transaction.
- LiveArea generated approximately $85 million in revenue for PFSW in the 12-month period ending March 31, 2021.
- Under normal closing conditions, PFSW expects the transaction to close by the third quarter of 2021.
- With strong first quarter results for 2021, PFSW has demonstrated its ability to optimize its resources and serve as a dedicated, flexible partner to clients.
- LiveArea and PFS have been established as distinct brands within the market, they have been segmented financially, and PFSW has structured its back office operations to support this segmented approach.
- This process of strategic alternatives will be undertaken while PFW continues to maximize the growth of PFS.
- PFSW’s assessment of the process will identify the best option that includes maximization of shareholder value while also dealing with the needs of team members.
What does this move mean for PFSW’s strategic plan?
Through this transaction, PFSW has clearly demonstrated its commitment to driving value for shareholders through growth for every business unit. PFSweb (PFSW) has also engaged Raymond James to engage in strategic alternatives exploration for its remaining business, PFS, in order to maximize shareholder value following the sale of LiveArea.
