Merrimack, NH—The merger agreement between computer resellers PC Connection (NASDAQ:PCCC) and Kent, CT-based Cyberian Outpost (NASDAQ:COOL) appears to be on shaky ground. PC Connection announced today that if Cyberian Outpost is unable to fulfill the net worth condition—defined as its assets minus liabilities—the merger agreement announced on May 30 will not be consummated. Cyberian Outpost has informed PC Connection that it may not be able to fulfill this net worth condition; according to PC Connection’s senior vice president of finance/chief financial officer Mark Gavin, Cyberian Outpost has until Aug. 31 to hit the net worth requirement—part of several conditions relating to the deal’s closing. Gavin says that PC Connection was originally drawn to Outpost.com because of its strong brand name, and its joint venture with electronics retailer Tweeter Home Entertainment Group. Outpost.com provides Tweeter and other partners with e-commerce services such as site design, site maintenance, order management and fulfillment.
PC Connection/Cyberian Outpost Merger on Shaky Ground?
Aug 22, 2001 9:30 PM By Mark Del Franco