PORT WASHINGTON – Systemax Inc. (NYSE: SYX) said that it will purchase selected assets of Circuit City’s e-commerce business for $6.5 million in cash plus a share of future revenue generated utilizing those assets over a 30 month period.
This is smart. Please read our old on the issue from January, 2009, entitled Valuation of Circuit City’s Web Operation. Circuit City was a top 100 site, and the intellectual property was worth a lot.
The agreement has been submitted for approval to the Bankruptcy Court for the Eastern District of Virginia, Richmond, Division. On November 10, 2008, Circuit City Stores, Inc. filed a petition for reorganization under federal bankruptcy laws. Completion of Systemax’s proposed acquisition of the assets is subject to both approval by the Bankruptcy Court as well as the auction process, and it will not be completed if a higher or better bid for the assets is submitted and approved by the court.
About Systemax Inc.
Systemax Inc. (http://www.systemax.com) sells personal computers, computer supplies, consumer electronics and industrial products through a system of branded ecommerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe.