Netgateway, Inc. (Nasdaq: NGWY) was down 1 1/16 to 10 11/16 Monday after the e-commerce software company agreed to acquire Galaxy Enterprises, Inc. (Nasdaq: GLXY) for 3.9 million common shares. Each Netgateway share will be exchanged for about 6/10 of a Galaxy share. Galaxy was unchanged at 5.
The companies said the merger will support Netgateway’s recent expansion into the cable mall and online mall markets. Galaxy has 3,400 online storefronts, and signs new merchants at a rate of 250 a month. The company operates the Matchsite, Galaxy Mall, Impact Media, and BannerSource services.
The companies said they plan to work on “joint business opportunities” ahead of the merger, which is subject to shareholder and other approvals.