Trans World Entertainment Corp. (Nasdaq: TWMC) acquired digital marketing and consulting firm Etailz Inc. for $75 million in cash and stock. The acquisition will help the Albany, New York-based owner of the FYE DVD and CD retail chain expand its online presence, as consumers shift much of their shopping activity to the Internet and mobile devices.
Etailz helps retailers with website development, search engine optimization, email and social media marketing. The company also uses data to identify new distributors and wholesalers, product trends, price positioning and inventory purchasing. The target is based in Spokane, Washington.
“In the past several years, the entertainment based retail industry and the retail landscape in general have experienced tectonic shifts and disruptions necessitating creative and transformative collaborations on order to continue serving customers within such a dynamic and competitive environment,” says Trans World CEO Mike Feurer.
Pitt Passage Consumer Advisors, Oppenheimer & Co. and Cahill Gordon & Reindel LLP advised Trans Word. Paine Hamblen LLP advised Etailz.
Retailers have been struggling to survive amid changing consumer behavior. Digital marketers have become attractive targets. Mediaocean, backed by Vista Equity Partners, acquired counterpart Invision Inc.; Perficient Inc. (Nasdaq: PRFT) acquired Enlighten; and Web.com Group Inc. (Nasdaq: WEB) purchased Yodle.