DSW buying Ebuys Inc. in $62.5 million deal

DSW is expanding its e-commerce capabilities with a deal to acquire Ebuys Inc., an online off-price footwear retailer with a presence in North America, Europe, Australia and Asia.



DSW announced that the purchase price includes an upfront payment of $62.5 million as well as future payments contingent on the performance of Ebuys, Inc. The deal is expected to close within the next 30 days.



"The acquisition of Ebuys, Inc. represents a unique opportunity to add a business to the DSW Inc. portfolio that will strategically scale our off-price sourcing capabilities, expand our presence into digital marketplaces, and create opportunities to serve international customers online," said Roger Rawlins, CEO of DSW Inc. "As CEO of Ebuys, Inc., David Duong has built a strong leadership team and developed an excellent off-price e-commerce model that complements DSW's growth strategy. Together, we will serve our combined customer base better and achieve our long-term growth goals."



Ebuys Inc. is the parent company of retail sites ShoeMetro and ApparelSave. Ebuys will continue to operate as a distinct business within DSW and maintain its offices in San Diego, California, and Antioch, Tennessee. David Duong will continue to lead the team as CEO of Ebuys, Inc.



"I admire the DSW team and the depth of resources DSW has developed over the years. We're excited to be part of DSW Inc. and we are confident the new relationship will accelerate our growth and provide significant benefits to our customers, vendors and employees," said David Duong, CEO of Ebuys, Inc.



The company anticipates that the impact of the acquisition, excluding purchase accounting adjustments and transaction costs, will be modestly accretive to earnings per share in fiscal 2016.