Peachtree Network Inc. (CDNX: PCH), the leading provider of online grocery services, yesterday announced it has executed an agreement with Fulgent Technologies Inc. to acquire the assets of eGrocer.com for common shares in Peachtree Network. San Jose-based eGrocer.com specializes in providing online grocery services to bricks-and-mortar grocers. The acquisition of eGrocer(TM) accelerates Peachtree Network’s aggressive expansion and enhances the company’s market-share leadership.
This purchase adds new grocers in California, Oregon, Washington, Minnesota, and North Dakota to the Peachtree Network client portfolio. To date, Peachtree Network has agreements in place with grocers in New Jersey, Louisiana, Florida, Colorado, Washington and Canada representing up to 800 grocery stores. Following this acquisition, Peachtree intends to integrate eGrocer’s partner grocers under Peachtree Network’s platform and operating systems.
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Gregory Kalinin, CEO of Peachtree Network says industry consolidation is a key part of Peachtree Network’s growth strategy. “This acquisition is another declaration of our leadership in the online grocery services industry, providing e-commerce and online marketing expertise to bricks and mortar grocery retailers. We are the natural acquirers of eGrocer since we are able to offer more value to their grocers than anyone else in the online grocery services industry. Our broader suite of products and services which promote in- store traffic as well as online shopping are key benefits to the grocers in the eGrocer family.” Kalinin adds, “With our expanded coverage, now coast-to- coast across North America, we have a very compelling medium for food and consumer packaged goods manufacturers to promote their products.”
Under the terms of the acquisition, Peachtree Network will acquire, for 500,000 common shares in the Peachtree, key eGrocer.com’s assets, including client contracts, a 22,000 person registrant database, back-end software and a database of over 200,000 products to accelerate online store development, trademarks, intellectual and physical property, and the eGrocer.com domain name – one of the highest traffic grocery-related domain names. The acquisition will be accounted for as a purchase under Canadian GAAP and is scheduled to be completed in December 2000. Structured as an asset purchase, the deal is subject to customary closing conditions.
ABOUT PEACHTREE
Network Peachtree Network is the leading provider of online grocery shopping services for grocery retailer. Working with grocers in the United States and Canada, Peachtree Network provides grocers with innovative online tools for shopping and driving in-store traffic. Peachtree Network also provides food lovers with the most comprehensive online food shopping portal, including grocery shopping, gourmet and specialty items, recipes, nutritional information, as well as “Ask the Dietitian” and “Ask the Chef” forums.
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