Kmart kiosk provider BlueLight.com acquires select assets of Spinway Inc.

SAN FRANCISCO --

BlueLight operates the BlueLight.com online shopping site and runs 3,600 Internet shopping kiosks in 1,200 Kmart stores nationwide.

Effective immediately, BlueLight will take control of the assets needed to maintain Internet service for BlueLight's more than 5 million subscribers. Financial terms of the acquisition were not disclosed.

BlueLight.com CEO Mark H. Goldstein said the cost of acquiring the core assets of Spinway was "very modest" and will have little effect on the company's efforts to attain profits. Through the deal, BlueLight will acquire all intellectual property and other selected assets of Spinway and retain a group of key employees. BlueLight will maintain Spinway's current network of local Internet dial-up providers. After the acquisition, Spinway will be dissolved.

The transition from Spinway to BlueLight is expected to take place without a lapse of service to subscribers. BlueLight is also working with other companies that offer Internet access through Spinway regarding continuing their service through BlueLight.