Hot Topic to acquire Geeknet
Mall retailer Hot Topic has agreed to purchase Geeknet Inc., an online retailer for clothing and merchandise for the “global geek community.”
Hot Topic will pay $17.50 per share. The transaction has an equity value of $122 million.
Geeknet, based in Fairfax, will become a subsidiary of Los Angeles-based Hot Topic. Geeknet is the parent company of ThnkGeek and ThinkGeek Solutions, which sell licensed T-shirts and other apparel and merchandise featuring movies such as Star Wars and video games like Minecraft.
“Geeknet's unique concept and approach to the online retail community is a strong fit with our business strategy, which is focused on delivering great products for avid fans of various licensed properties, and we are excited about the opportunity to help drive profitable growth and further enhance value for Geeknet's customers,” Hot Topic CEO Lisa Harper said in a statement.
Guggenheim Securities served as Geeknet’s financial adviser, and Wachtell, Lipton, Rosen & Katz served as its legal adviser. Kirkland & Ellis LLP and the Law Offices of Gary M. Holihan PC served as legal advisers to Hot Topic.