NEWS!!!
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NEW YORK (Dow Jones)--Bidhit.com Inc. (BHIT), an online auction Web site,
has agreed to acquire EZBid Inc., a wholly owned online auction subsidiary of
Systemax Inc. (SYX).
In exchange, Systemax, a Port Washington, N.Y.-based direct marketer of
computer hardware and software, will get a 30% stake in BidHit.
BidHit.com, Bothell, Wash., said the two companies plan to announce the
agreement officially on Tuesday.
The combination will create one of the top-10 online-auction Web sites,
BidHit.com said. Based on 1999 revenue figures, the two sites had combined
annual gross sales of $5.8 million.
"In addition to becoming an even more powerful force within the online
auction segment, this acquisition adds a substantial amount of value and
benefit to the company and its shareholders," said Tim Black, president and
chief executive officer of BidHit.com, in a statement.
Under a non-binding letter of intent, BidHit.com will issue 5,734,895 common
shares, representing a 30% stake, in exchange for EZBid.
Following the proposed transaction, Systemax expects to feature the
BidHit.com icon on the desktop displays of personal computers it assembles.
Systemax assembled more than 500,000 in 1999.
If completed, the transaction would result in a material one-time gain being
included in the earnings of Systemax, BidHit.com said.
Systemax shares, which are listed on the New York Stock Exchange, changed
hands late Monday at 8 5/16, down 5/16 or 3.6%.
BidHit.com is traded in the over-the-counter bulletin board market. Its
shares traded late Monday at 5 3/8, up 3/32. |
