RealTime IT News

MessageMedia Raises $42 Million in a Private Placement

MessageMedia Inc., a provider of e-mail-based customer relationship management and direct marketing services, closed on a private placement of approximately 4.095 million shares of its common stock for $41.975 million.

Investors include the company's existing strategic partners, SOFTBANK Venture Capital and Pequot Private Equity Funds, along with Van Wagoner Capital Management, Essex Investment Management Company, Kingdon Capital Management, Pogue Capital Management and other institutional investment groups.

Robertson Stephens acted as placement agent for the stock.

"We believe that e-messaging is one of the driving factors in the growth of online commerce and permission-based online marketing techniques," said Rick Juarez, senior e-commerce infrastructure services analyst at Robertson Stephens.

"MessageMedia has assembled an integrated suite of products and services which helps customers optimize relationships with their target audiences. The company's recent impressive customer wins, such as Reader's Digest, bode well for their future growth and financial outlook."

"The company now has the added financial flexibility to further broaden our robust suite of scaleable e-messaging offerings, speed our geographic expansion and support our aggressive acquisition activities," said Larry Jones, president and chief executive officer of MessageMedia.