PFSweb Acquires Digital Creative Agency LiveAreaLabs

PFSweb, Inc. PFSW, a global provider of end-to-end eCommerce solutions, has completed the acquisition of LiveAreaLabs, a digital creative agency and eCommerce systems integrator.

Headquartered in Seattle, Washington, with an additional office in New York City, LiveAreaLabs specializes in creating flagship digital experiences and offers a range of agency services including strategy, branding, user experience design, visual design, copywriting, and interactive development. Over five years, LiveAreaLabs has earned a reputation for delivering complex eCommerce implementations, award-winning guided selling apps, and digital campaigns for some of the most respected brands in the fashion, beauty and active lifestyle industries.

Co-founded in 2009 by Neil Nylander and Mark Moskal, LiveAreaLabs employs approximately 50 professionals and is expected to have approximately $8 million of revenue in calendar year 2014. PFSweb expects the transaction to be accretive to its adjusted EBITDA.

As a result of the acquisition, PFSweb has increased its 2014 service fee equivalent revenue guidance to range between $131 million and $137 million, up from $129 million to $135 million. The company also reiterates its 2014 adjusted EBITDA outlook to range between $12 million and $14 million.

"The first step in our growth-through-acquisition strategy was to strengthen our technology service offering, which we accomplished with the purchase of REV Solutions earlier this month," said Michael Willoughby, CEO of PFSweb. "The next step was to enhance our agency services solution, which we have now achieved with the addition of LiveAreaLabs.

"LiveAreaLabs significantly enhances our ability to create premium digital experiences for both current and prospective clients across the globe. In addition to expanding this higher-margin service offering, LiveAreaLabs supplements our technology services through our key partnership with Demandware. It also broadens our integration capabilities with the additional strategy, creative and user experience design support for hybris, Magento, WebSphere and Drupal, among other leading platforms. We look forward to leveraging the LiveAreaLabs breadth of services and strong management team, who are among the industry's thought-leaders and pioneers of innovation."

LiveAreaLabs will become a wholly owned subsidiary of PFSweb, and will operate under the name LiveAreaLabs, a PFSweb Company.

"Our passion for expressing the unique essence of brands through engaging digital experiences complements the PFSweb value proposition," said Mark Moskal, Co-Founder and Executive Creative Director of LiveAreaLabs. "Our specialization will also allow PFSweb to target potential clients earlier in their corporate development cycle, as we are often a key contributor to a company's brand strategy. We look forward to the opportunities ahead as we join a global organization," added Neil Nylander, the agency's Co-Founder and President.

For more information on LiveAreaLabs, please visit the company's website at www.livearealabs.com

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