News

Canadian bookseller to buy its e-commerce arm

February 18, 2002

TORONTO - Chapters Inc., which operates bookstores throughout Canada, has agreed to purchase all outstanding assets of Chapters Online Inc., an e-commerce company launched in 1999 as a separate, publicly-traded company.

Chapters Online installed e-commerce kiosks in all Chapters retail stores, including those operating under the names Chapters, Coles, SmithBooks and World's Biggest Bookstores. The kiosks, developed by Info Touch Technologies Corp., will continue to operate as part of Chapters Inc., which previously owned a majority share in the e-commerce arm. See "Info Touch, Chapters announce Internet kiosk deployment."

The agreement is similar to one announced last week by Kmart Corp., the U.S. retailer which agreed to buy out its e-commerce affiliate, Bluelight.com. See "Lights out at Bluelight.com".

Chapters Online shareholders will receive one common share of Chapters stock for every 7.14 shares of Chapters Online, according to a Chapters news release. The stock trades on the Toronto Stock Exchange. The deal, which must be approved by Chapters Online shareholders and pass creditor and regulatory hurdles, could be completed in October.

Heather Reisman, CEO of Chapters Inc., said the transaction creates an opportunity to lower costs and improve customer service. Chapters' stock trades under the symbol CHP on the Toronto Stock Exchange.

[Editor's note: Info Touch Technologies became Tio Networks in April 2006.]