UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For March 14, 2000
EL SITIO, INC (THE SITE, INC.)
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(Translation of registrant's name into English)
Avenida Ingeniero Huergo 1167, C1107, AOL, Buenos Aires, Argentina
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(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F /X/ Form 40-F /_/
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934. Yes /_/ No /X/
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
EL SITIO, INC
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(Registrant)
Date March 14, 2000 By /s/ Horacio Milberg
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Name: Horacio Milberg
___________________ Title: Chief Financial Officer
* Print the name and title under the and Secretary
signature of the signing officer.
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CONTACTS:
Media: Mariano Varela Investors: Jeff Majtyka/Leonardo Santiago
El Sitio, Inc. Brainerd Communicators, Inc.
(5411) 4339-3700 ext 3818 (212) 986-6667
EL SITIO, INC. AND DECOMPRAS.COM SIGN DEFINITIVE AGREEMENT
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El Sitio to Acquire Leading E-Commerce Player in Mexico
Miami, Florida and Monterrey, Mexico, March 14, 2000 -- El Sitio, Inc.
(Nasdaq: LCTO) announced today that it has entered into a definitive
agreement to acquire 100% of DeCompras.com, Inc., a leading e-commerce
company in Mexico. Under the terms of the transaction, El Sitio will issue
to shareholders of DeCompras.com an aggregate of 1.75 million of El Sitio
common shares, representing approximately 3.7% of the fully diluted shares
outstanding of the company, and pay $7 million in cash.
The transaction currently is expected to close by the end of April, subject
to customary conditions.
DeCompras.com (which means Shopping in English) has become a leader in the
Mexican e-commerce market, selling a broad range of products to consumers and
businesses including electronics, technology products, toys, gifts, jewelry,
and office supplies. DeCompras.com achieved over $1.0 million in net revenue
during its first eight months of operations, with a significant portion
coming in the first two months of 2000. Business-to-business transactions
currently account for 25% of DeCompras.com's total sales. DeCompras.com has
also made inroads to selling products to the 20 million US-based Mexican-
Americans who wish to deliver products in Mexico.
Roberto Vivo-Chaneton, El Sitio's Chairman, commented, "The DeCompras.com
acquisition accelerates the implementation of our e-commerce strategy by
enabling us to put in place a direct e-commerce platform before mid-2000,
approximately six months ahead of our original plan. We will continue to
move quickly to roll out our pan-regional e-commerce strategy with the goal
of becoming a major participant in this industry in Latin America."
Continued...
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"The ability to join forces with one of Latin America's leading Internet
networks validates the strength of DeCompras.com' s business," said Juan
Carlos Garcia S., Chief Executive Officer of DeCompras.com. " Our management
team is looking forward to working with El Sitio to continue to grow our
Mexican e-commerce business. We believe that, together, our companies have an
excellent opportunity to establish a formidable presence in what is expected
to be a dynamic market for online commerce."
Roberto Cibrian-Campoy, El Sitio's Chief Executive Officer, noted, "The
DeCompras acquisition is a major step in El Sitio's drive to establish a
leading e-commerce platform across Latin America. In executing this strategy
we will adhere to our strategy of building our network market by market,
recognizing the different needs and preferences of Internet users in the key
Spanish- and Portuguese-speaking markets which we target."
About El Sitio
El Sitio, Inc. (www.elsitio.com and www.osite.com.br ) is a leading Internet
network providing original and proprietary country-specific content for
Spanish- and Portuguese-speaking audiences in Latin America and the United
States. El Sitio consists of country web sites for Argentina, Brazil, Mexico,
Uruguay and the United States as well as a global site. El Sitio, offers
users country-specific content and interactive community features such as
free e-mail, a search engine, chat rooms, bulletin boards, auctions,
contests, and Cupido net, an interactive meeting place. Founded in 1997, El
Sitio has a team of approximately 330 professionals in its offices in Buenos
Aires, Mexico City, Miami, Montevideo, Santiago and Sao Paulo.
Forward-Looking Statements by El Sitio:
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This press release contains forward-looking statements relating to
future actions, events or financial performance of El Sitio. Investors should
understand that such forward-looking statements are subject to risks and
uncertainties, including, among others, the possibilities that the proposed
acquisition will not be consummated for various reasons and that El Sitio may
not realize the anticipated financial and other benefits of such acquisition.
Accordingly, investors are cautioned that the forward-looking statements
herein may not be realized.
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