On Tuesday, May 26, mall-based retailer Hot Topic announced that it will purchase Geeknet, Inc., the parent company of the go-to online shop for geeky apparel and products–ThinkGeek.
This news shouldn’t shock anyone who has stepped into a Hot Topic in recent years. The company has developed an obvious affinity for officially licensed apparel catering to the geek crowd. Star Wars, Marvel, Doctor Who, and other properties beloved in geek culture are prominently featured in Hot Topic storefronts and in the company’s online store.
Because geek culture is Hot Topic’s current focus, it makes business sense for the company to acquire the major competitor in the marketplace.
“We are pleased to have entered into this agreement and look forward to adding Geeknet’s innovative products and services to our portfolio,” says Hot Topic CEO Lisa Harper. She explains, “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.”
Geeknet CEO Kathryn McCarthy states, “We remain focused on increasing our visibility, providing a platform to stimulate ideas and creativity, and expanding our product offerings to keep up with industry and customer demands. As a subsidiary of Hot Topic, Geeknet will be well-positioned to achieve these goals.”
The acquisition, worth an estimated $122 million, is scheduled to happen on or before June 19, 2015.