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PFSweb Shares Rise 35% After Selling LiveArea Unit

By Chris Wack

 

PFSweb Inc. shares were up 35% to $10.27 after the company said it is selling LiveArea, its global customer experience and commerce agency business unit to Merkle Inc. for $250 million.

PFSweb said it expects to see proceeds of $185 million to $200 million, after consideration of estimated taxes and transaction related expenses. Following the closing, PFSweb expects to use a portion of the proceeds, along with existing cash on hand, to pay down in full its senior financing facilities.

For the trailing 12 months ended March 31, LiveArea generated $85 million in revenue on a standalone basis.

The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions.

PFSweb said it also has engaged Raymond James to lead the exploration of a full range of strategic alternatives for its remaining business segment, PFS, to maximize shareholder value. The company said there is no assurance that the strategic review process will result in any transaction.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

July 06, 2021 10:02 ET (14:02 GMT)

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