Press Release PR9.NET
Home Submit Press Release Search Archives
Press Release
Advanced Search
BROWSE BY CATEGORY

Business Business
Associations, Trade
Business Services
Human Resources
Publishing & Printing
Telecommunications
Marketing & Advertising
E-Commerce, Financial
Real Estate

Computers Computers
Entertainment Entertainment
Games Games
Health Health
Home Home
Science Science
Sports Sports
Society Society
Teens Teens
Press Release Category Business - E-Commerce - Digital River, Inc. Release Date: April 19, 2004

Digital River Acquires element 5


By Digital River, Inc.
April 19, 2004
Send SEND Print PRINT Download PDF Version PDF Contact Digital River, Inc. CONTACT

Acquires the Largest European E-Commerce Outsource Provider for Software Publishers
Significantly Adds to Company's Software Publisher Client Base
Strengthens Position in Rapidly Growing International Markets


PR9.NET April 19, 2004 - Digital River, Inc. (NASDAQ: DRIV), a global leader in e-commerce outsourcing , today announced that it signed a definitive agreement to acquire privately-held element 5 AG. Under the terms of the agreement, Digital River paid $120 million in cash . Digital River also may pay up to an additional $2.5 million in cash based on element 5's operating performance over the first 24 months subsequent to the acquisition. As part of the transaction, Digital River established a $45 million secured line of credit with Harris Trust and Savings Bank.

"The acquisition of element 5 is an important step in Digital River's international growth strategy," said Joel Ronning, CEO of Digital River. "This acquisition significantly adds to our market presence in Europe, enhances our ability to compete in the fast-growing international markets and is expected to increase the financial returns to our shareholders. This acquisition combines Digital River's proven strengths in e-commerce outsourcing with element 5's network of international software publishers. By leveraging these two complementary companies, we expect to accelerate Digital River's growth in 2004 and beyond."

Founded in 1996, element 5 is the leading, privately-held provider of outsourced e-commerce solutions for software publishers in over 150 countries. With a significant presence in Europe, element 5 is the second largest worldwide e-commerce outsource provider to software publishers. The company processes over two million transactions annually for more than 10,000 clients. As a result of the acquisition, element 5 becomes a wholly-owned subsidiary of Digital River and its operations remain in Cologne, Germany.

"element 5 shares Digital River's commitment to outsourced e-commerce for the software publisher market worldwide," said Gerrit Schumann, CEO and co-founder of element 5. "We have been successful growing our business and joining Digital River gives us an even greater opportunity to scale going forward. Together, we believe Digital River and element 5 will have the world's largest library of software titles and network of channel partners, which will increase our value to publishers and retailers."

Digital River also announced that it has established a secured revolving credit facility with Harris Trust and Savings Bank. The Company may borrow up to $45 million under the facility through May 28, 2004, and up to $30 million thereafter through the scheduled maturity of June 30, 2005. The facility also is secured by cash and receivables.

The Company will discuss its acquisition of element 5 after market close on Monday, April 19, 2004. The conference call will be held at 4:45 p.m. Eastern Daylight Time, with remarks from Joel Ronning, Digital River's chief executive officer, and Carter Hicks, Digital River's chief financial officer.

A live broadcast of the conference call may be heard inside the United States or Canada by dialing 877-422-0170, internationally by calling 706-679-5647, or via Webcast, which can be accessed on the Investor Relations section of Digital River's corporate Web site. A replay of the call will be available for two weeks beginning at 7:45 p.m. EDT on April 19, 2004, and can be accessed inside the United States or Canada by dialing 800-642-1687 or internationally by calling 706-645-9291, reservation number 6914701. Additionally, a Webcast replay of the call will be archived on the company's corporate Web site.


# # #

Contact Information of Digital River, Inc. Contact Information of Digital River, Inc.
Phone 952.646.55811
Website http://www.digitalriver.com
E-Mail E-mail Address Protected
Address Digital River, Inc.
Corporate Headquarters
9625 West 76th Street, Suite 150
Eden Prairie, MN 55344


About Digital River, Inc.

Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for more than 40,000 software publishers, manufacturers, distributors and online retailers. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running an e-commerce operation. The company's comprehensive platform offers site development and hosting, order management, fraud prevention, site merchandising, advanced reporting and analytics, product fulfillment, e-marketing and multi-lingual customer service.

Recent News Headlines
More Press Releases
Industry Category of Current Press Release
    Copyright © 2004 - 2014 PR9.NET - All rights reserved RSS Feeds Submit Press Release Terms of Service Privacy Policy