Drug store chain Walgreens has signed a definitive agreement to acquire drugstore.com Inc. for $409 million, gaining access to more than 3 million online customers and adding about 60,000 new products along with new vendor partners to Walgreens' online product portfolio.

The companies expect the acquisition to close by July. The purchase price is less than drugstore.com's 2010 revenue of $456 million, but Walgreen's price of $3.80 per share is a 102 percent premium over the average closing price during the past 30 days.

Bellevue, Wash.-based drugstore.com, with 1,000 employees, is a survivor of the dot-com collapse a decade ago. The company was founded in 1998 and its first web site went live in February 1999. The company today operates four sites: drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.

--Joseph Goedert


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