Fingerhut Acquires Equity Interest in Roxy.Com, Internet's Leading
Marketer of Digital Technology Products
Tuesday January 26, 8:00 am Eastern Time
Company Press Release
SOURCE: Fingerhut Corporation
MINNEAPOLIS and BOSTON, Jan. 26 /PRNewswire/ -- Fingerhut Companies, Inc. (NYSE: FHT - news), one of the nation's largest direct marketers and online
retailers, and Roxy Systems, Inc., the leading marketer of digital technology products on the Internet, today announced that Fingerhut has acquired a 19.9 percent equity
interest in Roxy Systems, Inc. Financial terms of the agreement were not disclosed.
Roxy Systems, Inc. is an Internet marketer of digital communications and entertainment services, such as home satellite TV, digital wireless phone and dial-up Internet
services, to the consumer.
Roxy has forged groundbreaking merchandising partnerships with top Internet sites including the Excite Networks, Broadcast.com, CBS SportsLine, Yahoo, MSN
Shopping, and the Disney family of Internet sites, including ESPN.com, ABCNEWS.com, NASCAR Online, and NBA.com. Combined, these Internet sites reach more
than 50 percent of the total Internet audience every month. In addition, Roxy offers its select line of Digital Products for the Digital Age(TM) directly to consumers
through its own web sites roxy.com, pcscentral.com and satellite.com
''This investment in Roxy is yet another example of Fingerhut's aggressive strategy to grow through electronic commerce,'' said Fingerhut Chairman and Chief
Executive Officer Ted Deikel. ''You can be sure that we will continue our efforts to invest in and partner with other companies where there are opportunities to build our
presence to become the leading retailer on the Web.''
According to Will Lansing, Fingerhut president, ''Roxy has successfully positioned itself as a value-added player in the digital consumer products and services arena,
one of the largest consumer markets on the Internet. Roxy.com has built a strong Internet business by providing its Web partners fully integrated retailing capability. And
now Roxy will leverage Fingerhut's state-of-the-art infrastructure.''
Fingerhut will provide ''backroom'' operations including order processing, fulfillment services, merchandise integration, and database management as well as assisting
Roxy with promotional advertising and marketing support.
''We are excited about our partnership with Fingerhut,'' said Keith Clougherty, Roxy Systems president and chief executive officer. ''It will not only provide us with
financial support necessary to maintain our rapid growth, but it will provide us with unmatched expertise and support in promotion, sales and marketing that comes with
one of the world's leading database marketing powers. We also believe Roxy.com's close association with top Web content and gateway sites, as well as our online
marketing expertise, create real synergy with Fingerhut's strong push into Internet commerce.''
The investment represents the sixth major deal for Fingerhut in as many months. In July, Fingerhut purchased an equity interest in PC Flowers and Gifts, Inc., a leading
Internet provider of flowers and gourmet food and gift baskets. In August, November and December, the company purchased catalogers Arizona Mail Order, Popular
Club and Bedford Fair respectively. And in December, Fingerhut acquired equity interests in Internet companies Freeshop.com and TheZone Network.
Roxy Systems, Inc., founded in April 1996, is a privately held company with 55 employees based in Hopkinton, Mass. It is the nation's number one online retailer of
DirecTV service, and recently was listed by Silicon Alley magazine as among the country's 30 top e-commerce companies. Roxy specializes in residual services, such as
DirecTV home satellite TV service, Netcom Internet service, and AT&T digital wireless phone service. Roxy.com also offers a select line of complementary consumer
equipment including satellite TV systems, DVD players, digital wireless phones, surround-sound home theater systems and many other audio/video components.
Fingerhut Companies, Inc. is a leading database marketing company selling a broad range of products and services through catalogs, direct marketing, and the Internet.
The company also owns Popular Club, a membership-based cataloger of general merchandise, Arizona Mail Order and Bedford Fair, catalog apparel companies, and
Figi's, a food and gift catalog company. Based in Minnetonka, Minn., the company and its subsidiaries employ approximately 9,000 people. Fingerhut can be found on
the Internet at fingerhut.com, andysgarage.com, thehut.com, figis.com, pcflowers.com,
mountainzone.com, skiresorts.com, freeshop.com, roxy.com, pcscentral.com, and
satellite.com
SOURCE: Fingerhut Corporation |
