Mall staple Hot Topic is taking another chain under its umbrella for a $122 million price tag, announcing that it’s acquiring Geeknet, Inc., parent company of online retailers ThinkGeek and ThinkGeek Solutions, for $122 million. Commemorative T-shirts with cheeky sayings for everyone!
Hot Topic is known for its mall stores as well as its status as an online purveyor of goods you might find at the mall. It announced the acquisition today, noting that the $122 million total equity value includes $37 million of cash and cash equivalents.
Geeknet, as Bloomberg points out, was once part of a company known as the hottest IPO on the block before the dotcom bubble burst. Back then, its customers knew it as VA Linux Systems, one of the first companyies to sell personal computers with the open-source Linux operating system pre-installed. Nowadays, Customers know ThinkGeek for its focus on merchandise tied to video games, comic books and sci-fi franchises.
“We are pleased to have entered into this agreement and look forward to adding Geeknet’s innovative products and services to our portfolio,” said Lisa Harper, Chief Executive Officer of Hot Topic in a press release. “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.”