Engine Capital Favors Merger Of PFSweb, Speed Commerce

(RTTNews) - Engine Capital LP, a shareholder of each of PFSweb Inc (PFSW) and Speed Commerce Inc (SPDC), on Monday said that a combination of the two companies would create strong growth opportunities.

Speed Commerce provides e-commerce and fulfillment services to retailers and manufacturers, while PFSweb provides business process outsourcing and ecommerce solutions.

Engine Capital, which owns a stake of about 4% of PFSweb and 3% of Speed Commerce, in a communique to both companies, said, "While we think that both companies have significant and exciting standalone prospects, we think that a merger of both companies offers an opportunity to create significant additional value that would not detract in any way from the existing opportunities of both companies."

"A strategic combination would create a juggernaut in the space that would be the unequivocal number-two player behind eBay Enterprise."

Engine Capital further said, "Instead of having the number- two and number-three players (PFSW and SPDC) compete against each other for business, this combination would create a number-two player with significant scale, additional revenue opportunities, significant cost savings opportunities, and potential multiple rerating."