PORT WASHINGTON, N.Y., May 22, 2009 (BUSINESS WIRE) -- Systemax Inc. (NYSE:SYX) today announced it has completed the acquisition of the Circuit City e-commerce business and launched the new and improved CircuitCity.com website. The new CircuitCity.com features low everyday prices, great deals, a wide selection of products, fast shipping, world-class 24/7 customer service, advanced search capabilities, and enhanced content, including photo galleries and videos of thousands of the most popular consumer electronics and computer products.
Richard Leeds, Chairman and Chief Executive Officer of Systemax, commented, "This acquisition and quick launch of the all new CircuitCity.com further solidifies Systemax's position as a leader in online retailing of value-priced, branded computers and consumer electronics. Circuit City is one of the iconic brands in U.S. electronics retailing with a 60-year legacy. With the longstanding leadership of our TigerDirect.com business and the growing contribution of our CompUSA business acquired last year, we think Systemax is uniquely positioned to best carry forward the great Circuit City brand in the online space."
On May 19, 2009 Systemax closed on its agreement to acquire certain trademarks, trade names, domains including www.CircuitCity.com, customer lists and information, and other intangible assets of Circuit City's e-commerce business. The purchase price was $14 million in cash plus a share of future revenue generated utilizing those assets over a 30-month period. Under the terms of the agreement, the minimum future revenue guaranteed to Circuit City is $3 million. The Bankruptcy Court issued its order approving the transaction on May 15, 2009 following a public auction conducted on May 11, 2009.
In North America, Systemax sells consumer electronics online, by direct mail and in retail stores under the TigerDirect and CompUSA brands. Internet Retailer recently named Systemax the 21st largest online retailing company for 2009 and 9th largest in the Computers and Electronics category in their Top 500 Guide for 2009.
About Systemax Inc.
Systemax Inc. (www.systemax.com), a Fortune 1000 company, sells personal computers, computer supplies and accessories, consumer electronics and industrial products through branded e-commerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. The primary brands are TigerDirect, CompUSA, Misco and Global Industrial. It also manufactures and sells computers and accessories under the Systemax and Ultra brands and develops and markets ProfitCenter Software, a web-based application for multichannel direct marketing companies.
This press release contains forward-looking statements about the Company's performance. These statements are based on management's estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Actual results may differ materially from results expressed or implied in these statements as the result of risks, uncertainties and other factors including, but not limited to: (a) unanticipated variations in sales volume, (b) economic conditions and exchange rates, (c) actions by competitors, (d) the continuation of key vendor relationships, (e) the ability to maintain satisfactory loan agreements with lenders, (f) risks associated with the delivery of merchandise to customers utilizing common carriers, (g) the operation of the Company's management information systems, and (h) unanticipated legal and administrative proceedings. Please refer to "Risk Factors" and the Forward Looking Statements sections contained in the Company's Form 10-K for a more detailed explanation of the inherent limitations in such forward-looking statements.
SOURCE: Systemax Inc.
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