RealTime IT News

24/7 Media Acquires AwardTrack for $75 Million

Ad services firm 24/7 Media on Tuesday agreed to acquire AwardTrack, a company that creates and manages online loyalty programs, in an all-stock deal valued at $75 million.

The purchase adds online loyalty programs to 24/7 Media's (TFSM) arsenal of capabilities. The company has recently been on something of an acquisition binge, having bought IMAKE Software and Services and Sabela Media for a combined $150 million.

Although last year rumors swirled about 24/7 being itself acquired by either leader DoubleClick (DCLK) or CMGI (CMGI), the holding company that has been building its assets in the advertising category, the company's recent moves seem to indicate that 24/7 is more interested in staying independent.

This latest acquisition bolsters 24/7's bid for independence, giving it another capability to offer to its clients just as the online loyalty space heats up.

AwardTrack lets Web retailers and content sites issue points to Web users as a reward for making purchases, completing surveys or looking at promotions. These points can be issued, redeemed and exchanged for points in programs of other AwardTrack partners using the proprietary technology. The company also operates a consumer-oriented Web site called PointsUniverse, which helps people keep track of their various loyalty points.

"Our acquisition of AwardTrack furthers 24/7 Media's long term business strategy of fulfilling the promise of online marketing - building enduring one-to-one relationships with customers," says David Moore, 24/7 Media's president and CEO.

"AwardTrack further extends 24/7 Media's impressive breadth of marketing services, enabling our Web sites and e-commerce customers to offer points-based incentive services on their Web site, in banner ads over the 24/7 Network and through 24/7 Mail."