Acquires Rival, Leads Consolidation (Nasdaq: IPET) announced Tuesday that it has entered into an agreement to acquire key assets and strategic relationships of privately held competitor said the move will allow it to solidify its already strong position in the online pet market, which is crowded with such similarly named stores as, and

The assets to be acquired include rights to the name and trademark and its equity relationship with The online pet store will receive a $3 million (US$) equity investment.

Inside the Deal said the deal, set to close at the end of this month, will make a significant shareholder in the company. In addition, said it will issue approximately 5.8 million shares of common stock and approximately 850,000 shares of redeemable non-voting, non-convertible series A preferred stock.

Along with the name and trademark, will acquire the Emeryville, California-based’s complete database of customers and newsletter subscribers;’s live fish business;’s content; its strategic supplier agreements; and ownership of all URLs, trademarks, and intellectual property related to the brand., which just last week announced layoffs, has already shut its virtual doors. Shoppers are directed to the site and told that all orders placed on or before June 12th will be filled by Relationship

The cornerstone of the agreement is the strategic alliance that gives an exclusive, integrated e-commerce tenancy on for one year — extendable for up to three additional years. has also agreed to provide links from relevant content to the site for a period of four years.

The agreement is not limited to; it includes offline media promotion of on the Discovery Communications family of television networks. Discovery Communications, which owns, has 14 distinct media brands in 149 countries with 180 million total subscribers.

Channels owned by Discovery Communications include the Discovery Channel, TLC, Animal Planet, the Travel Channel, and the Discovery Health Channel. As part of the deal, President and COO Michela English will join the board of directors.

Relationship with Safeway is also establishing a strategic marketing relationship with Safeway, which has food and drug stores in 18 U.S. states.

Under the terms of the 24-month marketing agreement, Safeway will promote through various in-store programs and other means, and will carry the Safeway SELECT pet food line on the Web site.

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