Kent, CT—Online computer marketer Cyberian Outpost agreed on Aug. 31 to be acquired by Sunnyvale, CA-based retail electronics supplier Fry’s Electronics. The announcement ends weeks of speculation regarding whether Cyberian would merge with Peterborough, NH-based computer cataloger PC Connection. During the last week of August, PC Connection said its proposed merger, announced on May 30, was in jeopardy because Cyberian could not meet the net worth requirement.
Fry’s agreement to buy Cyberian will become effective upon the termination of Cyberian’s existing merger agreement with PC Connection, which depends upon the repayment of loans made to Cyberian by PC Connection. Fry’s has agreed to lend Cyberian up to $13 million to repay PC Connection, pay off Cyberian’s secured debt, and provide funds for working capital. The loan will be secured by all of Cyberian’s assets.
Fry’s will pay $0.25 per share in cash for Cyberian. The transaction, expected to close in the fourth quarter, is subject to approval of Cyberian’s stockholders and to other closing conditions. On Aug. 15, Fry’s acquired online retailer Egghead.com, which was in bankruptcy proceedings.