Merisel Acquires Value America in Bankruptcy-Filing Tie-Up

Strategic Insights -

Merisel Inc., a technology products distributor to resellers throughout North America, is acquiring most or all of bankrupt online retailing firm Value America Inc., according to separate statements from the companies and a Value America spokesperson. Value America, which filed for Chapter 11 protection and reorganization on August 11, will wind down its operations after the acquisition, and Merisel is expected to keep operations in Charlottesville, Va. and retain most of the remaining 75 technical employees who oversee the company's leftover hardware assets.

Key Takeaways:

  • Merisel is acquiring most or all of Value America's assets in a bankruptcy-filing tie-up, pending agreement and necessary approvals.
  • The acquisition is expected to close in 30 days subject to certain conditions, including Merisel board approval.
  • Merisel plans to retain most of Value America's 75 technical employees who oversee the company's leftover hardware assets.
  • Value America will wind down its operations, including its e-fulfillment business, after the acquisition.
  • Merisel is expected to keep operations in Charlottesville, Va.
  • Value America filed for Chapter 11 protection and reorganization on August 11, and had previously announced a goal to find a buyer in 60 days.
  • Value America was once a darling of Washington-area high-tech companies, but trouble started to become apparent last December when the company consolidated operations, cut jobs, and sought further funding.

Statistics:

  • Value America has 75 technical employees who will be retained by Merisel.
  • Value America filed for Chapter 11 protection on August 11.
  • Merisel is expected to close the acquisition in 30 days.
  • Value America had announced a goal to find a buyer in 60 days.
  • Value America will wind down its operations after the acquisition.

Sources:

  • Washtech.com: http://www.washtech.com (Reported by Washtech.com)