Shares of Geeknet Surge Following Announcement Of Acquisition

Shares of

were surging higher by nearly 120 percent at $17.30 during Tuesday's pre-market trading session after the company announced that

will acquire all outstanding shares of the company at a purchase price of $17.50 per share. The transaction has a total equity value of approximately $122 million, including $37 million of cash and cash equivalents as of March 31. Geeknet owns and operates ThinkGeek, a business aimed at the global "geek" community. Founded in 1999, ThinkGeek has been creating a world where everyone can express their inner geek, embrace their passions, and connect with each other. ThinkGeek Solutions, a distributor of video game-themed merchandise was added to the company's portfolio in 2014. Hot Topic is a leading mall and web-based specialty retailer selling music and pop culture licensed and influenced apparel and accessories. The company operates more than 650 stores in the U.S. and Canada. Hot Topic is a portfolio company of Sycamore Partners, a private equity firm based in New York. "We are pleased to have entered into this agreement and look forward to adding Geeknet's innovative products and services to our portfolio," said Lisa Harper, Chief Executive Officer of Hot Topic in a

"Geeknet's unique concept and approach to the online retail community is a strong fit with our business strategy, which is focused on delivering great products for avid fans of various licensed properties, and we are excited about the opportunity to help drive profitable growth and further enhance value for Geeknet's customers." "Our Board and management team believe this transaction is in the best interest of the Company and its stockholders," said Kathryn McCarthy, Chief Executive Officer of Geeknet. "We remain focused on increasing our visibility, providing a platform to stimulate ideas and creativity, and expanding our product offerings to keep up with industry and customer demands. As a subsidiary of Hot Topic, Geeknet will be well-positioned to achieve these goals."