a21 has acquired ArtSelect
Jacksonville Florida based a21 Inc, owner of SuperStock, PureStock, and Ingram Publishing, has announced the acquisition of ArtSelect one of the leading companies offering wall décor and fine art prints online. The Fairfield Iowa based, ArtSelect, employs approx 65 employees providing private label online technology and fulfillment infrastructure to catalogers, retailers and distributors to allow them to offer custom framed art to their end-customers. a21 is touting that ArtSelect earned $12 million in revenue for 2005 giving a21 a revenue increase of approximately 100%. To complete the purchase a21 paid $4.5 million in cash, $2.35 million in three year 6% interest only notes, $3.15 million in a21 Series A Convertible Preferred shares (with a conversion floor of $0.75 per a21 common share), and a four year warrant to purchase 750,000 a21 common shares at $1.00 per share.
Jerry Oliver, Vice President and General Manager of ArtSelect, had this to say about the acquisition. "We are truly excited about the deal with a21. Their extensive content archive and experienced management team should provide immediate benefit to ArtSelect. We believe that ArtSelect's core infrastructure strengths and extensive client base will create strong cross-selling opportunities for a21's images."
"We believe ArtSelect has built a unique business model which is not currently available in the Art and Wall Décor market. We plan to leverage their model with our ever increasing base of over one million images from our SuperStock and Ingram subsidiaries, and especially those selections from our Fine Art and Vintage collections," said Thomas V. Butta, a21 Vice-Chairman and President.
Click here to view the original press release.
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