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Egghead, Onsale merge
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July 14, 1999: 9:22 a.m. ET
Software e-tailer, sales and auction site combine in $400M stock swap
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NEW YORK (CNNfn) - Egghead.com Inc. and Onsale Inc. agreed Wednesday to merge in a stock swap valued at approximately $400 million.
Egghead.com sells computer hardware and software, and the merger will allow it to combine its own auction offerings with Onsale's online auction services of such equipment.
Egghead (EGGS) shareholders will receive 0.565 share of Onsale (ONSL) stock for each Egghead share, giving Egghead holders about 47 percent of the combined company.
The deal has been approved by both companies' boards and awaits shareholder and regulatory approval.
The resulting company will be called Egghead.com and will be headquartered in Menlo Park, Calif. Total sales for 1999 are estimated at $500 million.
"On the Internet, scale and brand matter," said Onsale CEO Jerry Kaplan.
Kaplan said the companies want to combine their marketing dollars and drive visitors to a single brand name, while eliminating duplicate costs.
Onsale buys refurbished and excess goods and auctions them on its site. Earlier this year it branched out into selling personal computers and other computer-related products as it found seasonal availability hindered its offerings of many other items.
Egghead.com also has undergone changes. The company began as a chain of software stores but closed the last of them in 1998 to focus exclusively on online sales. 
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Egghead
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