Online US-based retailers BabyUniverse and eToys Direct are in a family way as the two companies have announced a definitive agreement for an all stock merger.
The pair announced its intentions this morning after the companies’ boards of directors agreed to the transaction that would see BabyUniverse shareholders acquiring one-third of the new company, while eToys Direct shareholders hold the remaining two-thirds. The deal is still subject to approval by BabyUniverse shareholders.
eToys, the larger of the two kids e-tailers, netted US$117 in toy sales for fiscal 2006, and the move will marry both BabyUniverse’s retail ops and new-media platform BabyTV.com (which features programming for expectant and new moms) with eToys’ Toys.com, Hobbies.com and Birthdays.com sites.
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