Digital River Acquires SWReg
MINNEAPOLIS, March 18, 2005-- Digital River, Inc. (NASDAQ: DRIV), a global leader in e-commerce outsourcing, today announced it acquired SWReg, a provider of e-commerce services for software authors. Under the terms of the agreement, Digital River acquired certain assets and assumed certain liabilities, vendor contracts and intellectual property of SWReg for $8.8 million in cash. Digital River may make additional earn-out payments of cash based on achieving specific revenue and development goals over the first 12 months following the closing of this acquisition. This acquisition did not impact the company's first quarter 2005 revised financial expectations announced on March 17, 2005.
This acquisition is a continuation of our strategy to extend our global footprint and expand our client base, software library and online sales network, said Joel Ronning, CEO of Digital River. Moving forward, we intend to capitalize on this strong foundation by offering our clients broader access to global online markets and new opportunities to drive online revenues and operational efficiencies.
About Digital River, Inc.
Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for more than 40,000 software publishers, manufacturers, distributors and online retailers. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running an e-commerce operation. The company's comprehensive platform offers site development and hosting, order management, fraud prevention, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis with offices in major U.S. and European cities. For more details about Digital River , visit the corporate Web site at www.digitalriver.com or call 952-253-1234.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements, including statements regarding the Company's anticipated future growth, client services and financial performance as well as statements containing the words intends, anticipates or expects, and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others: the Company's limited operating history and variability of operating results; competition in the e-commerce market; difficulties associated with integration of acquired companies or assets and other risk factors referenced in the Company's public filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K filed on March 16, 2005, for the year ended Dec. 31, 2004.
Digital River is a registered trademark and SoftwarePassport is a trademark of Digital River, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.
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