Monday, November 5, 2012

As Seen On TV, Inc. (ASTV) to Acquire eDiets.com, Inc. (DIET) for $15 Million

As Seen On TV today announced that it will acquire eDiets.com, a provider of personalized nutrition, fitness, and weight-loss programs, in a stock-for-stock transaction valued at approximately $15 million.

The merger is slated to occur during the first quarter of 2013, at which time eDiets.com will become a wholly owned subsidiary of ASTV. eDiets.com will continue to be operated by its current management, which led the company’s achievement of $22 million in revenue over the past 12 months.

ASTV noted synergies between the two companies, as well as their shared vision to accelerate eDiets.com’s food meal delivery business. ASTV CEO Steve Rogai said the merger presents an opportunity to leverage both companies’ offerings to form a stronger entity.

“The decision to merge these companies was a very strategic one. At its core, eDiets is a marketing company that uses direct response to sell their proprietary meal delivery program. Because of this, the opportunity to grow both companies using ASTV’s unique direct response and live shopping channel experience will exponentially grow eDiets and help bring the overall public company to the next level,” Rogai stated in the press release.

Kevin Richardson, chairman of eDiets.com, echoed the sentiment.

“I’m extremely excited about this merger. Both entities bring a lot of experience and success marketing products directly to consumers across a wide range of product categories. A lot of synergies exist between the two companies that I feel will create a powerful direct marketing partnership poised for significant growth in 2013 and beyond,” he stated.

For more information, visit www.eDiets.com or www.TVGoodsInc.com

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