13 WTHR - Indianapolis News |GSI Commerce buys RueLaLa.com owner
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KING OF PRUSSIA, Pa. (AP) - Online e-commerce company GSI Commerce Inc. said Tuesday it has purchased the owner of the RueLaLa.com Web site, which holds private sales of sought-after items at discounts.
The $350 million deal for parent company Retail Convergence Inc., based in Boston, also includes SmartBargains.com.
GSI CEO Michael Rubin said Rue La La's new way of shopping, using invitation-only private sales, will "continue its remarkable growth trajectory."
Rue La La's sales, Rubin said, are an effective way for retailers to sell off brand-name items quickly while protecting their brand. The site was started in April 2008 and its membership has since grown to 1.2 million.
GSI Commerce, based in King of Prussia, Pa., also said Tuesday that it narrowed its third-quarter loss to $9.4 million, or 18 cents per share, in the quarter that ended Oct. 3. That compares with a year-ago loss of $14.2 million, or 30 cents per share.
Revenue rose 2 percent to $190.3 million from $186.8 million.
Analysts polled by Thomson Reuters had expected a wider loss of 30 cents per share on$185 million in revenue.
GSI is a e-commerce and interactive marketing provider for retailers. It runs customer service call centers and technical online sales services.
Its shares closed Tuesday at $20.96, down a penny.
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