USA: Webvan Completes Merger With Homegrocer.com
Webvan Group, Inc. (Nasdaq:WBVN), the "last mile" leader in e-commerce, today completed its acquisition of HomeGrocer.com (Nasdaq:HOMG) of Kirkland, WA. Under terms of the transaction approved August 31 by the stockholders of both companies, HomeGrocer stockholders will receive 1.07605 shares of Webvan common stock for each share of HomeGrocer common stock. Approximately 138 million shares of Webvan stock will be exchanged for all currently outstanding shares of HomeGrocer.com. "With this merger we have responded rapidly and aggressively to the changing dynamics of the online marketplace," said George T. Shaheen, president and chief executive officer of Webvan Group, Inc. "By combining with HomeGrocer, Webvan now has a larger national footprint. We are financially stronger, more nimble, and better positioned to revolutionize the way America shops. Webvan recognizes that championing the 'last mile' of e-commerce requires a tightly integrated organization with a steadfast focus on customer satisfaction. Today, Webvan stands alone in its ability to meet this objective and offer consumers a complete and frictionless shopping experience." As a result of the merger, Webvan now operates in nine major metropolitan areas. By the end of the year, as a result of the merger, Webvan expects to serve metropolitan area markets in Atlanta, Baltimore, Bergen County (NJ), Chicago, Dallas, Los Angeles, Orange County (CA), Portland (OR), Sacramento, San Diego, San Francisco, Seattle, and Washington, D.C., from facilities in ten of these markets. For the near term, Webvan will continue to operate under the HomeGrocer brand and Web store in Southern California, Dallas, Portland, and Seattle. A full transition to the Webvan brand name and the integration of the companies' technology platforms are expected early next year.
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