RealTime IT News

Engage to Acquire AdKnowledge

Continuing to gobble up Internet advertising companies, CMGI Inc.'s Engage Technologies said it will acquire AdKnowledge, a provider of Web marketing management solutions, in a stock deal valued at approximately $193 million.

On Monday of this week, CMGI announced a deal to acquire ad serving company AdForce in a $500 million stock deal.

The moves bolster a CMGI Internet advertising arsenal that already includes ad network Adsmart and measurement firm I/PRO.

"AdKnowledge and Engage are uniquely complementary and share the same objective -- to improve the effectiveness of online marketing," said Scott Kauffman, CEO of AdKnowledge.

"Integrating Engage's consumer profile data and profiling technologies into the AdKnowledge System will create the industry's most comprehensive suite of tools for marketers and agencies."

CMGI said the combination of Engage, AdKnowledge and Engage's I/PRO products and services will position Engage as a "leading provider of data analysis to marketers and agencies."

CMGI will initially acquire control of AdKnowledge through the issuance of approximately $170 million of CMGI common stock, followed by a contribution of AdKnowledge shares held by CMGI and AdKnowledge shareholders to Engage in exchange for approximately $193 million of Engage common stock.

AdKnowledge, which is privately held, will become a wholly owned subsidiary of Engage.

AdKnowledge clients include SportsLine, eBay, eToys and agencies Organic and i-Traffic.

"We are excited about the opportunity to add value to these relationships by incorporating profile based ad targeting into AdKnowledge's extensive services," said Paul Schaut, president and CEO of Engage.