RealTime IT News

NetCreations May Abandon DoubleClick Merger Offer

NetCreations Thursday said it plans to break off its planned merger with DoubleClick, after it received a better offer from an undisclosed company.

The New York-based e-mail marketer said it has received a binding, written offer from an "unrelated" third party to acquire all of its outstanding shares $7 in cash, a deal valued at $110 million.

NetCreations said its board has decided that the new offer constitutes a better proposal than DoubleClick's, and has notified the Alley ad giant of its intention to accept the competing offer.

DoubleClick's all-stock bid for NetCreations had been valued at about $191 million at the time of its offer. Through that agreement, DoubleClick said it would pay 0.41 shares of DCLK in exchange for every share of NetCreation, or about $12.15 per share. That $12.15 represented a 17 percent increase over NTCR's 10-day average price.

Since that time, as DoubleClick's stock price has fallen, so has too the value of the deal. At press time, DoubleClick's offer was worth about $59 million. DoubleClick would have wound up paying about $3.76 per share of NTCR, which had been trading at $6.50 until halted.

NetCreations chief financial officer Robert Mattes declined to comment on specifics of the deal. A spokesperson from DoubleClick said the company would release a statement about its intentions later on Thursday.

According to terms of their original agreement announced October 3, DoubleClick has three business days to offer a counter bid.

Also according to the original deal with DoubleClick, NetCreations must pay a breakup fee of more than $8.6 million should the two companies' merger not go through. That fee will now have to be shouldered by NetCreations' unnamed suitor.

We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.