News

Hot Topic to acquire Geeknet

Hot Topic, a mall and web-based specialty retailer, will acquire Geeknet, the parent company of retailer ThinkGeek.

May 28, 2015

Hot Topic Inc., a mall and web-based specialty retailer, and Geeknet Inc., the parent company of online retailers ThinkGeek and ThinkGeek Solutions, this week announced that they have entered into an agreement under which Hot Topic will acquire all of the outstanding shares of Geeknet common stock at a purchase price of $17.50 per share.  

The transaction has a total equity value of approximately $122 million, including $37 million of cash and cash equivalents as of March 31, 2015.

"We are pleased to have entered into this agreement and look forward to adding Geeknet's innovative products and services to our portfolio," Lisa Harper, CEO of Hot Topic, said in a statement. "Geeknet's unique concept and approach to the online retail community is a strong fit with our business strategy, which is focused on delivering great products for avid fans of various licensed properties, and we are excited about the opportunity to help drive profitable growth and further enhance value for Geeknet's customers."

Pursuant to the agreement, the tender offer will commence no later than June 19, 2015. Consummation of the tender offer is subject to certain customary conditions. Shareholders representing approximately 21 percent of Geeknet outstanding shares have committed to participate in the tender offer.

"Our Board and management team believe this transaction is in the best interest of the Company and its stockholders," Kathryn McCarthy, CEO of Geeknet, said in a statement. "We remain focused on increasing our visibility, providing a platform to stimulate ideas and creativity, and expanding our product offerings to keep up with industry and customer demands. As a subsidiary of Hot Topic, Geeknet will be well-positioned to achieve these goals."