Barnes & Noble.com, New York, plans to acquire bookseller Fatbrain.com Inc., in a deal valued at approximately $64 million.
Fatbrain is the third-largest online bookseller. It is a business-to-business marketer, specializing in professional and technical titles. It also builds online bookstores for corporate clients.
Under the terms of the deal, Barnes & Noble.com will acquireFatbrain.com in a merger, in exchange for $4.25 per share for all the outstanding shares of Fatbrain.com. After the merger, Fatbrain.com will become a wholly owned subsidiary of Barnes & Noble.com llc. The consideration is comprised of 75% stock in Barnes & Noble.com and 25% cash for each Fatbrain.com share. The transaction is subject to regulatory and stockholder approvals.
Fatbrain.com’s senior management, including Dennis Capovilla, president and CEO, and Kim Orumchian, executive vice-president of product development, are to stay in their current positions, according to a statement by Barnes & Noble.com. The company would remain headquartered in Santa Clara, CA.
Fatbrain.com has about 350 Fortune 1000 companies worldwide. There are more than 500 Fatbrain.com co-branded online bookstores and information resource centers. It has two bricks and mortar bookstores in Silicon Valley, which would also be acquired as part of the deal.
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