Stock Soars on Completion of Deal

Wall Street applauded on Thursday when online software retailer (Nasdaq: BYND) completed its acquisition of privately held competitor Shares of rocketed 29 percent on Thursday, closing up 7-5/8 to 29-1/2.’s purchase of is valued at approximately $123 million (US$). As has gained momentum, a major competitor has struggled. When announced the deal on February 22, the combination of the two companies still didn’t add up to the market capitalization of CompUsa (NYSE: CPU). But CompUsa has been hampered by weak sales at its brick-and-mortar stores, and shares of CompUsa are near their 52-week low. When the markets closed on Thursday, had a market cap of $924.3 million, compared to CompUsa’s $617.5 million.

Benefits for says the acquisition of gives it 200,000 new customers and nearly one million overall customers. also gains a team of engineers that the company feels will help it expand its digital distribution presence.

“The strengths of are extremely complementary with our own and fundamentally support our vision to become the leading reseller of packaged and digital software to consumers, government agencies and corporate enterprises,” Mark Breier, president and CEO of, said when the deal was announced. “In particular, we believe’s engineering expertise will accelerate the continued development of’s digital downloading capabilities, giving the company an even greater competitive advantage.” will also benefit from the addition of an exclusive software retailing partnership with the @Home Network and a strategic alliance with Web-based director also adds technology content sites CNET and ZDNet to its list of partners.

“In our view, our combined companies simply can’t be beat in branding, distribution partners, content and technical expertise,” said Bong Suh, CEO of, when the deal was announced. “When considering the excellent product fit, complementary marketing and distribution channels, and the strong cultural match between our two companies, we believe this acquisition benefits our collective customers, publishers, employees and stockholders.”

Under the terms of the deal, Suh will now become vice president of corporate development for, focusing on working toward new partnerships.

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