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Breakaway Ventures and General Catalyst sell stakes in Retail Convergence

Venture capital firms Breakaway Ventures and General Catalyst Partners have sold their stakes in Retail Convergence to GSI Commerce.

GSI is a provider of e-commerce and interactive marketing services, while RCI is an operator of the e-commerce business companies SmartBargains.com and RueLaLa.com.

GSI signed a definitive agreement to acquire RCI for approximately USD350m in October.

The purchase consideration comprises USD180m to be paid at closing equally in cash and stock and an additional maximum earn-out consideration of up to USD170m based on the achievement of RCI’s non-GAAP income from operations (Ebitda) of USD51.9m in fiscal year 2012.

Bank of America and Blank Rome are acting as financial and legal advisers to GSI, respectively.

Cowen and Goulston & Storrs are acting as financial and legal advisers to RCI.

The acquisition will strengthen GSI’s evolution as an e-commerce platform capable of managing all aspects of online sales and interactive marketing for retailers and consumer brands. The acquisition will also enable GSI to enter into the private sale space with the addition of RueLaLa.com.

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