Etoys Direct and BabyUniverse Finally Merge

Oct 17, 2007 2:07 AM  By

In a deal that’s taken almost nine months from conception, eToys Direct and BabyUniverse have finally completed a $276 million merger. BabyUniverse shareholders approved the transaction on Oct. 12. The merger had been previously approved by eToys Direct shareholders, including its largest stakeholders: members of the D.E. Shaw group of companies.

Under the terms of the merger, which was previously announced on March 13, the holders of eToys Direct common stock now own approximately two-thirds of the new company and BabyUniverse shareholders own about a third.

The new entity, named The Parent Co., will be located in Denver, CO, though this is subject to shareholder approval. Common stock in the combined company will trade under the current BabyUniverse ticker until the name change. The Parent Co. will trade under the Nasdaq ticker KIDS.

“The combination of BabyUniverse’s expertise in managing and growing e-content-based businesses and eToys Direct’s proficiency in high-volume fulfillment, inventory management, and top-quality customer service, creates a strong platform to drive sustainable growth in shareholder value,” said CEO Michael J. Wagner in a statement.