Online Advertising Articles|
DoubleClick to Acquire MessageMedia
June 1, 2001 -- DoubleClick Inc. (Nasdaq: DCLK), who have already established a clear leadership position in the online advertising industry, and MessageMedia, Inc. (Nasdaq: MESG), a provider of permission-based, email marketing and messaging solutions, today announced that they have entered into a definitive agreement for DoubleClick to acquire MessageMedia in a common stock transaction valued at approximately $41 million.
The acquisition will broaden DoubleClick's client base as well as provide the company with a licensed software solution.
Under the terms of the acquisition, DoubleClick will issue 0.0436 of a share of DoubleClick common stock for each share of MessageMedia common stock. Based on DoubleClick's 10-day average closing stock price ending May 31, 2001, the exchange ratio represents a per share price of $0.60, a 42% premium over MessageMedia's 10-day average closing stock price. The transaction is subject to certain conditions, including MessageMedia stockholder approval, but is expected to be completed in the third quarter of 2001.
As a result of this transaction, DoubleClick will be able to provide customers with a full range of solutions including full service and self-service outsourced email technology, a software solution, and consulting services. In addition, MessageMedia's experience in Europe will assist with DoubleClick's expansion into the European email space. DoubleClick plans to continue to support the MessageMedia's M3Platform for the foreseeable future and, over time, will integrate that platform with its DARTmail and FloNetwork technologies.
"This acquisition reinforces our commitment to deliver flexible email marketing solutions to our global customer base," said Court Cunningham, Vice President and General Manager of DARTmail Technology, DoubleClick. "With this acquisition, we will expand our customer base to over 500 leading direct marketers and increase the number of personalized emails delivered to over 700 million per month."
"DoubleClick's commitment to developing the most robust email marketing solutions in the market, coupled with their strong financial position, make this transaction a strategic fit for MessageMedia," said Larry Jones, President and CEO of MessageMedia. "Together we will be able to provide a suite of solutions that deliver highly integrated, cost-effective email campaigns for businesses that want to enhance the level of their customer communications."
This acquisition builds on DoubleClick's position as the leading email technology provider. In April, DoubleClick closed its acquisition of FloNetwork, a Toronto-based, email marketing technology provider. DoubleClick's suite of email marketing products combines the power of email and permission-based marketing to provide powerful, integrated solutions to help online marketers and publishers develop profitable lifetime customer relationships. Currently, DoubleClick's eMail suite includes both the DARTmail and FloNetwork delivery platforms, as well as DoubleClick eMail List Services, which helps list owners monetize their opt-in email names and helps list renters find and target the most responsive prospects for their email marketing efforts