Hot Topic, Inc. ("Hot Topic"), a leading mall and web-based specialty retailer, and Geeknet, Inc.GKNT
"Geeknet"), the parent company of online retailers ThinkGeek and ThinkGeek Solutions, today announced that they have entered into a definitive agreement under which Hot Topic will acquire all of the outstanding shares of Geeknet, Inc. common stock at a purchase price of $17.50 per share. The transaction will be completed by means of a tender offer to be commenced shortly. The transaction has a total equity value of approximately $122 million, including $37 million of cash and cash equivalents as of March 31, 2015. "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. "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." Pursuant to the agreement, the tender offer will commence no later than June 19, 2015. Consummation of the tender offer is subject to certain customary conditions. Shareholders representing approximately 21% of Geeknet outstanding shares have committed to participate in the tender offer. Guggenheim Securities served as Geeknet's exclusive financial advisor and Wachtell, Lipton, Rosen & Katz served as its legal advisor. Kirkland & Ellis LLP and the Law Offices of Gary M. Holihan, PC served as legal advisors to Hot Topic.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.