Overstock.Com Inc OSTK shares are trading higher in Wednesday's after-hours session after the company announced the consummation of its acquisition of certain IP assets of Bed Bath & Beyond.
The Details: Overstock said it would begin combining its asset-light business model with the Bed Bath & Beyond brand under a Bankruptcy Court supervised process. Assets acquired include website and domain names, trademarks, tradenames, patents, a customer database and loyalty program data.
Overstock plans to re-launch the Bed Bath & Beyond domain in Canada within the next week. In the coming weeks, the retailer plans to re-launch an updated website, mobile app and loyalty program in the United States.
"The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the Company for accelerated market share growth," said Jonathan Johnson, CEO of Overstock.
Overstock entered into an agreement to purchase Bed Bath & Beyond's assets for $21.5 million. The company had $374.7 million in cash and equivalents as of March 31.
Overstock said it will host a conference call to discuss the transaction Thursday at 8.30 a.m. ET.
OSTK Price Action: Overstock shares were up 4.58% at $26.71 at the time of publication, according to Benzinga Pro.
Photo: Phillip Pessar from Flickr.
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