DSW To Buy Privately Held Ebuys For $62.5 Mln Upfront Payment - Quick Facts

(RTTNews) - DSW Inc. (DSW), a branded footwear and accessories retailer, announced Wednesday that it has entered into a definitive agreement to acquire Ebuys, Inc., an e-commerce off-price footwear and accessories retailer. The purchase price includes an upfront payment of $62.5 million as well as future payments contingent on the performance of Ebuys.

Following the deal, Ebuys will continue to operate as a distinct business within DSW and maintain its offices in San Diego, California, and Antioch, Tennessee. David Duong will continue to lead the team as CEO of Ebuys, which has a presence in North America, Europe, Australia and Asia.

DSW said the transaction supports its efforts to grow its market share within footwear and accessories domestically and internationally.

The company anticipates that the impact of the acquisition, excluding purchase accounting adjustments and transaction costs, will be modestly accretive to earnings per share in fiscal 2016.

The transaction is expected to close in the next 30 days.

Peter J. Solomon Company served as financial advisor to DSW. Houlihan Lokey served as financial advisor to Ebuys.