Footwear and accessories retailer DSW has announced it has purchased off-price e-commerce retailer Ebuys for an upfront payment of $62.5 million.
The move comes as DSW looks to expand its online presence and increase business abroad, and the company said it expects the acquisition to add modestly to its per-share earnings this year. The deal is expected to close within the next 30 days.
“The acquisition of Ebuys, Inc. represents a unique opportunity to add a business to the DSW Inc. portfolio that will strategically scale our off-price sourcing capabilities, expand our presence into digital marketplaces, and create opportunities to serve international customers online,” said Roger Rawlins, DSW Inc. chief executive officer. “As CEO of Ebuys, Inc., David Duong has built a strong leadership team and developed an excellent off-price e-commerce model that complements DSW’s growth strategy. Together, we will serve our combined customer base better and achieve our long-term growth goals.”
Ebuys, Inc. will continue to operate as a distinct business within DSW and maintain its offices in San Diego, California, and Antioch, Tennessee. David Duong will continue to lead the team as CEO of Ebuys, Inc.
David Duong, chief executive officer of Ebuys, Inc., stated, “I admire the DSW team and the depth of resources DSW has developed over the years. We’re excited to be part of DSW Inc. and we are confident the new relationship will accelerate our growth and provide significant benefits to our customers, vendors and employees.”