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Goodbye to COOL
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Business New Haven
11/26/2001
By: BNH
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KENT - Electronics retailer Outpost.com (NASDAQ: COOL) ended its run as a publicly held company November 8 after shareholders cleared the way for Fry's Electronics to complete its acquisition of the Web-only company. Shareholders overwhelmingly approved the deal, worth just under $8 million.
Under the terms of the Fry's purchase agreement, which first was revealed in early September, each of the 31.7 million shares of Outpost can be exchanged for 25 cents. The agreement also calls for a $13 million loan to help Outpost survive until the deal is sealed. “Fry's acquisition of Outpost.com proved to be our best opportunity to enhance stockholder value,” said Outpost founder, president and CEO Darryl Peck.
Based in Sunnyvale, California, Fry's operates 19 electronics stores, mainly on the West Coast and in the Southwest, but had a minimal Web presence. Fry's Electronics does not currently sell products online and does not maintain a customer service e-mail address, although there are online store feedback forms. In addition to the Outpost site, which has been ranked as the top electronics site for three years straight in the Forrester Research Power Rankings, Fry's will get access to Outpost's database of 1.5 million customers, many of whom have remained loyal to the e-tailer despite its financial struggles and downsizing.
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