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Blucora, Inc. (NASDAQ:BCOR) today announced that it has entered into a definitive agreement to acquire Monoprice, a rapidly growing online provider of self-branded consumer electronics and accessories. The all-cash transaction, valued at $180 million, is subject to satisfaction of customary closing conditions and is expected to close in the third quarter of 2013.
Founded in 2002, Monoprice delivers premium quality products at prices substantially below the famous brands by leveraging direct sourcing relationships and selling directly at monoprice.com. The Company offers thousands of Monoprice-branded items on its website, with top-tier service, and rapid product delivery.
“We are pleased to welcome Monoprice to the Blucora portfolio” said William J. Ruckelshaus, President and Chief Executive Officer of Blucora. “Monoprice is a disruptive participant in large markets for electronics and tech accessories where purchasing is rapidly moving online. The Company has deeply loyal customers and significant runway ahead. We are tremendously impressed with the Monoprice team and excited about our future together.”
The acquisition is expected to be immediately accretive to Blucora earnings per share and represents an attractive return on shareholder capital. For the twelve months ending June 30, 2013, Monoprice generated revenues of $131.1 million, and adjusted EBITDA of $16.0 million. Blucora expects to fund the transaction with cash on hand. Upon completion of the acquisition, Monoprice will become a wholly-owned subsidiary of Blucora, and will continue operations in Rancho Cucamonga, California, as a standalone business unit led by the Monoprice management team.
“Since Monoprice’s founding, we have strategically expanded into higher growth and higher margin product categories without losing focus on our mission to deliver the best quality products at the lowest price,” said Monoprice CEO Ajay Kumar. “Blucora brings decades of experience managing and investing in digitally-enabled businesses. We believe this combination will help elevate the Monoprice business into a mainstream consumer brand. This opportunity secures a bright future for Monoprice and I look forward to being a part of it as we work towards a quick and seamless transition.”