December 1, 2005 -- (WEB HOST INDUSTRY REVIEW) -- E-commerce outsourcing provider Digital River (digitalriver.com) announced on Thursday that it had signed an agreement to acquire Commerce5, a provider of e-commerce outsourcing specializing in the high-tech manufacturing and consumer electronics markets, for approximately $45 million in cash.
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With the deal, Digital River acquires 40 Commerce5 customer contracts, including companies such as ATI Technologies, Fujitsu Computer Products of America, Gateway, Lexmark International, Sharp Electronics, Sony Electronics and Western Digital Corporation.
Joel Ronning, CEO of Digital River, says the acquisition enables the company to extend its market reach and accelerate growth in the broader high-tech marketplace.
Commerce5 enables customers to sell online through their own or third party e-commerce sites and is known for its ability to handle complex product catalogs.
"Through this acquisition, we can offer clients and consumers a more complete package of high-tech products from highly complementary markets," says Ronning. "Moving forward, we plan to leverage the natural affinities in our product lines to enhance third-party selling opportunities in Digital River's online reseller channel, expand relationships with leading distribution partners and accelerate our growth in 2006 and beyond."
The deal, subject to certain closing conditions, is expected to close in December 2005. Commerce5 will become a wholly owned Digital River subsidiary.
