Barnes & Noble buys electronic bookseller

New York City Barnes & Noble said Thursday that it purchased electronic bookseller Fictionwise for $15.7 million in cash.

The deal gives Barnes & Noble a presence in the e-book market prior to the launch of its e-Bookstore later this year.

The transaction may also include additional performance-based payments to Fictionwise over the next two years.

Barnes & Noble plans to keep New Jersey-based Fictionwise as an individual division after the deal closes, with founders Steve and Scott Pendergrast remaining at its helm.