PFSweb to Sell LiveArea Business to Merkle for $250

ALLEN, Texas, July 06, 2021 (GLOBE NEWSWIRE) — PFSweb, Inc. (NASDAQ: PFSW), a worldwide commerce companies firm, has agreed to promote LiveArea, its international buyer expertise and commerce company enterprise unit to Merkle, Inc., a number one technology-enabled, data-driven buyer expertise administration (CXM) firm inside Dentsu Group’s worldwide enterprise, Dentsu International (Tokyo: 4324). Under the phrases of the settlement, Merkle will buy LiveArea for whole consideration of roughly $250 million, with web proceeds anticipated to vary between $185 million to $200 million, after consideration of estimated taxes and transaction associated bills. Following the closing of the transaction, PFSweb expects to use a portion of the online proceeds, together with present money readily available, to pay down in full its senior financing services. For the trailing twelve months ended March 31, 2021, LiveArea generated roughly $85 million in income on a standalone foundation. The transaction is anticipated to shut within the third quarter of 2021, topic to customary closing situations. Throughout its 30-year historical past, Merkle has labored with world-class manufacturers to implement customer-centric efficiency advertising options, offering tailor-made, distinctive buyer experiences on a worldwide scale. Its heritage in information, expertise, and analytics kinds the muse for its understanding of client insights that drive hyper-personalized advertising methods. As a Dentsu Group firm, Merkle is dedicated to serving to shoppers ship best-in-class, differentiated and linked commerce experiences throughout the complete buyer journey. In addition to LiveArea’s experience in expertise and Connected Commerce, the company’s rising vary of digital enterprise capabilities, which has expanded to embody NXT™ Intelligence, Product Innovation, Service Design, Performance Marketing, and Orchestrated Services, enhances Merkle’s companies and technique. “Over the previous yr and a half, we now have labored diligently to return LiveArea to sustained development, with our strengthened management and gross sales groups driving larger organizational effectivity and report gross sales pipeline exercise,” mentioned Mike Willoughby, CEO of PFSweb. “We consider this transaction with Merkle, a fellow high-touch, technology-enabled buyer expertise administration firm, will enable LiveArea to extra totally notice its development potential, create vital worth for our LiveArea strategic companions and place LiveArea to higher serve our world-class shoppers. The Merkle workforce not solely acknowledges our improved basis, but in addition shares our dedication to modern, data-driven options and distinctive shopper service. Under Merkle’s possession, we consider LiveArea is well-positioned for the highway forward.” Jim Butler, President of LiveArea, added: “I’m grateful for our workforce’s onerous work and the rising pipeline of bookings and new service choices we now have constructed. We consider our integration into Merkle will present our workforce with extra assist and accelerated growth alternatives, and we glance ahead to working with the Merkle workforce to make LiveArea an excellent stronger firm to create agile, enterprise driving options with our shoppers. I’m additionally excited to proceed working with my colleagues at PFS to assist our shared shoppers as we additional strengthen our service providing with entry to Merkle’s digital enterprise capabilities.” “Adding LiveArea to the Merkle household provides us the chance to each improve our U.S. commerce presence and deepen our experience in EMEA at a time of accelerated development throughout our trade,” mentioned Michael Komasinski, President of Merkle Americas. “LiveArea’s seasoned workforce and breadth of commerce capabilities strengthen our aggressive benefit within the supply of scaled, environment friendly buyer expertise administration companies and built-in options.” Raymond James acted as unique monetary advisor to PFSweb within the transaction. FisherBroyles, LLP acted as authorized counsel to PFSweb within the transaction. Exploration of Strategic Alternatives With the divestiture of LiveArea underway, PFSweb has additionally engaged Raymond James to lead the exploration of a full vary of strategic alternate options for its remaining enterprise phase, PFS, to maximize shareholder worth. “Through the primary quarter of 2021, PFSweb’s robust efficiency has demonstrated the advantages of our concentrate on optimizing assets and serving as a dedicated, versatile associate for our shoppers,” mentioned Monica Luechtefeld, chair of PFSweb’s board of administrators. “Over the previous three years, we now have labored to set up LiveArea and PFS as distinct manufacturers available in the market, phase these companies financially, and bear an organizational restructuring that aligned our back-office capabilities with this segmented strategy. This transaction clearly validates our efforts to maximize development for every enterprise unit and drive worth for our shareholders, and we’ll proceed to concentrate on maximizing the expansion of PFS whereas we full this strategic alternate options course of. As this course of unfolds, our evaluation will prioritize the choice that almost all expeditiously and effectively maximizes worth for our shareholders whereas additionally searching for the most effective final result for our workforce members.” PFSweb has not established a timeline for completion of this strategic overview course of, and the corporate doesn’t intend to remark additional concerning the overview course of except or till a particular transaction is accepted by its board of administrators or shareholders, the overview course of is concluded, or it has in any other case decided that additional disclosure is acceptable or required by legislation. The firm gives no assurance that the strategic overview course of will lead to any transaction. About PFSweb, Inc.PFSweb (NASDAQ: PFSW) is a worldwide commerce companies firm that manages the web buyer purchasing expertise on behalf of main branded producers and retailers. Across two enterprise items – LiveArea for data-driven advertising and omnichannel expertise design by expertise choice, platform implementation and orchestrated companies, and PFS for order achievement, contact middle, cost processing/fraud administration, and order administration companies – they supply options to a broad vary of Fortune 500® firms and family model names similar to Procter & Gamble, L’Oréal USA, Champion, Pandora, Ralph Lauren, Shiseido Americas, the United States Mint, and lots of extra. PFSweb allows these manufacturers to present a extra handy and brand-centric on-line purchasing expertise by each conventional and on-line enterprise channels. The firm is headquartered in Allen, TX with extra places across the globe. For extra data, go to About LiveAreaLiveArea is an award-winning international buyer expertise and commerce company. We deliver the total potential of digital enterprise to life, serving to manufacturers create significant and lasting buyer connections. Fusing creativity, technique, and expertise, our companies embody NXT IntelligenceTM, product innovation, linked commerce, service design, efficiency advertising, and orchestrated companies. We deliver collectively world-class commerce expertise, constructing and launching modern services and products powered by data-driven insights to elevate buyer relationships – on-line and in-store. We ship B2B, B2C, and D2C options to shoppers in well being and wonder, style and attire, luxurious, client packaged items, retail shops, healthcare, and automotive. For extra data, go to About Dentsu Group (dentsu) Led by Dentsu Group Inc. (Tokyo: 4324; ISIN: JP3551520004), a pure holding firm established on January 1, 2020, the Dentsu Group encompasses two operational networks: dentsu japan community, which oversees Dentsu’s company operations in Japan, and dentsu worldwide, its worldwide enterprise headquarters in London, which oversees Dentsu’s company operations outdoors of Japan. With a powerful presence in over 145 nations and areas throughout 5 continents and with greater than 64,000 devoted professionals, the Dentsu Group gives a complete vary of client-centric built-in communications, media and digital companies by its eight management manufacturers—Carat, dentsu X, iProspect, Isobar, dentsumcgarrybowen, Merkle, MKTG and Posterscope—in addition to by Dentsu Japan Network firms, together with Dentsu Inc., the world’s largest single model company with a historical past of innovation. The Group can also be energetic within the manufacturing and advertising of sports activities and leisure content material on a worldwide scale. Dentsu Group Inc. web site: About MerkleMerkle is a number one data-driven buyer expertise administration (CXM) firm that focuses on the supply of distinctive, customized buyer experiences throughout platforms and gadgets. For greater than 30 years, Fortune 1000 firms and main nonprofit organizations have partnered with Merkle to maximize the worth of their buyer portfolios. The firm’s heritage in information, expertise, and analytics kinds the muse for its unmatched expertise in understanding client insights that drive hyper-personalized advertising methods. Its mixed strengths in efficiency media, buyer expertise, buyer relationship administration, loyalty, and enterprise advertising expertise drive improved advertising outcomes and aggressive benefit. With 12,000 workers, Merkle is headquartered in Columbia, Maryland, with 50+ extra places of work all through the Americas, EMEA, and APAC. Merkle is a dentsu firm. For extra data, contact Merkle at 1-877-9-Merkle or go to Forward-Looking StatementsThe issues mentioned herein comprise forward-looking data underneath the Private Securities Litigation Reform Act of 1995 and is topic to and includes dangers and uncertainties, which may trigger precise outcomes to differ materially from the forward-looking data. You can determine these forward-looking statements by phrases similar to “could,” “will,” “would,” “ought to,” “may,” “anticipate,” “anticipate,” “consider,” “intend,” “plan,” “potential,” “venture,” “search,” “attempt,” “predict,” “proceed,” “goal,” and “estimate” and different comparable expressions. These forward-looking statements contain dangers and uncertainties and will embody assumptions as to how we could carry out sooner or later, together with the affect of the COVID-19 pandemic on our enterprise, outcomes of operations and international financial situations. Although we consider the expectations mirrored in our forward-looking statements are affordable, we can not assure these expectations will really be achieved. PFSweb’s Annual Report on Form 10-Okay, as amended, for the yr ended December 31, 2020 and any subsequent amendments or quarterly experiences on Form 10-Q determine sure elements that would trigger precise outcomes to differ materially from these projected in any ahead trying statements made and traders are suggested to overview the periodic experiences of the corporate and the Risk Factors described therein. PFSweb undertakes no obligation to replace publicly any forward-looking assertion for any cause, even when new data turns into accessible or different occasions happen sooner or later. There could also be extra dangers that we don’t at present view as materials or that aren’t presently identified. Investor Relations:Cody Slach and Jackie KeshnerGateway Investor [email protected]

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