American clothing retailer Hot Topic Inc. has agreed to buy Geeknet Inc. for about $122 million, paying more than double the market value for the “geek”-focused retailer, according to media reports.
The offer of $17.50 a share is a significant premium to Geeknet’s last closing price of $7.90 a share.American clothing retailer Hot Topic Inc. has agreed to buy Geeknet Inc. for about $122 million, paying more than double the market value for the #
Geeknet is the parent company of online retailers ThinkGeek and ThinkGeek Solutions, which sell an assortment of clothing, gadgets and video game-themed merchandise targeted at geeks and hackers.
Shares of Geeknet have fallen about 41 per cent in the last 12 months.
Hot Topic agreed to be taken private by Sycamore Partners for about $600 million in 2013. Hot Topic’s namesake stores draw most of their merchandising cues from music and pop culture. It has 650 stores in the US and Canada. (SH)
Fibre2fashion News Desk – India
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