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Bankruptcy Court Approves EBSCO Purchase of RoweComThe United States Bankruptcy Court in Boston has approved the sale of failed subscription agency RoweCom USA to EBSCO Industries April 7, in accordance with a purchase agreement previously executed by the two companies.Final closing of the deal and the sale price are contingent on support from a majority of publishers who did not receive due payment for subscriptions placed by libraries through RoweCom. It also depends on successful closure of EBSCO’s acquisition of RoweCom’s European operations, which is awaiting French regulatory approval. Both items were expected to be finalized in the next few weeks, with the sale price possibly lowered depending on how close the aggregate amount of customer orders and renewals will be to projected RoweCom business for 2003. Asked about the $7.05-million sale price that has been quoted by other media, EBSCO spokeswoman Regina Kennamer told American Libraries, “These numbers are being tossed around, and I don’t know where people are coming up with them. The actual sale price won’t be known for months,” she said. The sale also includes the U.S. operations of Dawson, Dawson Information Quest, Faxon, Turner Subscription Agency, McGregor Subscriptions Service, and Corporate Subscription Services. EBSCO is also finalizing its purchase of RoweCom Australia. The orders of Australian libraries that prepaid RoweCom but whose subscription payments were not forwarded to the publishers will be given grace periods by publishers, as were those in the U.S. Posted April 28, 2003. |
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