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K2 Says Sale of CLIQNOW! Part of Major Refocusing

K2 Design Inc. in New York said the sale of its CLIQNOW! ad network to 24/7 Media Inc. for gross proceeds of $4 million if part of its refocusing in the interactive advertising and media business.

K2 said the deal also calls for the cross-referral of business between the two companies.

K2's decision to sell the unit comes on the heels of the agency becoming profitable.

"We can now better focus on the growth and management of our core business and the expansion of our media buying and analysis group," said Matthew de Ganon, president of K2 Design.

Robert Burke, K2's Chief Operating Officer, who managed the sale of CLIQNOW! together with de Ganon, said, "This sale successfully concludes the first phase of our restructuring plan. We will now seek opportunities to participate in the ongoing consolidation of our industry."