PC Mall Buys Online Competitor

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PC Mall Inc. on Tuesday said it will acquire consumer electronics retailer eCost.com from parent company PFSWeb in a deal valued at $2.3 million.

PC Mall, a Torrance retailer of computer and electronics products primarily to business and government customers, plans to keep operating eCost.com as an online discount marketplace for computers and consumer electronics. The website has a premium online membership shopping club, and a proprietary shopping format called Bargain Countdown that offers discount deals on select merchandise for limited time.

The Plano, Texas-based business had about $76 million in sales during the 12 months ended Sept. 30. PC Mall also acquired about $1 million in inventory in the deal and plans to form a new subsidiary called OnSale Inc., which eventually will combine eCost.com with PC Mall’s own OnSale business.

“We are very excited about this acquisition, which will help us broaden our reach into the consumer market,” Chief Executive Frank Khulusi said in a statement.

Shares closed up 50 cents, or 5.7 percent, to $9.25 on the Nasdaq.

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