Torrance, Calif. - PC Mall said today it will acquire consumer electronics retailer eCost.com from parent company PFSWeb.
The deal is valued at $2.3 million.
PC Mall, which sells computer and electronics products primarily to business and enterprise customers, said it plans to keep operating eCost.com as an online discount marketplace for computers and CE products.
The Plano, Texas-based eCost.com had about $76 million in sales in its most recent fiscal year. PC Mall also acquired about $1 million in eCost.com inventory 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, said PC Mall CEO/chairman Frank Khulus. "Consumer spending represents a significant portion of the U.S. economy and the opportunities surrounding a consumer-focused web strategy can be compelling. Our plan for our new consumer-focused subsidiary is to leverage its brands, revenue stream, vendor relationships, online traffic, customer base, patents and employee base to expand as well as to explore additional market opportunities."
PC Mall ranked 28th in TWICE's most recent Top 100 CE Retailers Report, with 2009 CE sales of $507 million. eCost.com was No. 76 on the list.