Xspand Product Lab Inc., a product development company based in Phillipsburg, announced it has signed a purchase agreement to acquire the common membership interests of Edison Nation LLC for approximately $850,000 and 990,000 shares of common stock.
The acquisition is expected to close by the end of July.
Edison Nation is a marketplace for consumer and medical product ideas and intellectual property. It also provides its corporate partners with innovative solutions and locates new products to acquire.
“Today, innovation is alive and well, but the needs of our community have grown,” Louis Foreman, founder, CEO and majority shareholder of Edison Nation, said. “With the advent of crowdfunding and e-commerce, the way new products are brought to market has changed. Innovators now need the ability to not only share their ideas but also introduce them to consumers quickly and effectively. Our acquisition by Xspand Products Lab meets these needs by unleashing services and resources to not only develop products, but also to manufacture and distribute them. For 10 years, Edison Nation has been the trusted marketplace for innovators to share their ideas, this is not going to change, it’s only going to get bigger.”
Under terms of the deal, Foreman will join Xspand as an independent director, effective at the close.
“We are very pleased to welcome the Edison Nation community to the Xspand family,” said Chris Ferguson, CEO of Xspand Products Lab. “The acquisition of Edison Nation provides not only an experienced team and wholesale selection of micro-brands for us to leverage, but more importantly, provides a platform that I believe will drive future growth for years to come. The ability to efficiently aggregate innovation, combined with Xspand’s de-risked product development model, will enable innovators to rapidly address opportunities in the most efficient manner possible.”
“We look forward to working with the Edison Nation community to bring their ideas and inventions to life. Together, I am confident that we will be a driving force behind the next wave of internationally recognized products, which we believe may lead to significant value creation both for innovators and our shareholders,” Ferguson said.