US footwear and accessories retailer DSW has agreed to acquire off-price e-commerce retailer Ebuys in a deal which it says will allow the company to strategically scale its off-price sourcing capabilities.
The deal will also allow DSW to expand its presence into digital marketplaces, and create opportunities to serve international customers online, as part of its efforts to grow its market share within footwear and accessories domestically and internationally.
Ebuys sells branded off-price footwear and accessories in North America, Europe, Australia and Asia, and operates two e-commerce platforms under the ShoeMetro and ApparelSave brands.
It will continue to operate as a distinct business within DSW and maintain its offices in San Diego, California, and Antioch, Tennessee. David Duong will continue as CEO of Ebuys.
Meanwhile, DSW operates 469 stores in 42 states, the District of Columbia and Puerto Rico, and supplies footwear to 378 locations in the US under the Affiliated Business Group.
The undisclosed purchase price includes an upfront payment of US$62.5m as well as future payments contingent on the performance of Ebuys.
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By GlobalDataDSW expects the impact of the acquisition, excluding purchase accounting adjustments and transaction costs, to be modestly accretive to earnings per share in fiscal 2016.
