MindArrow Looks to Acquire Irish CRM Firm
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Rich media e-mail marketer MindArrow said it plans to snap up Dublin, Ireland-based Twelve Horses, Ltd., in a deal aimed at broadening its cross-media CRM capabilities and jump-starting its European expansion.
Under the acquisition's terms, Twelve Horses shareholders would receive common stock and/or options to purchase up to 29 percent total of Aliso Viejo, Calif.-based MindArrow. Although the companies wouldn't give details of the percentage of stock versus options, an all-stock deal would amount to around $10 million based on Thursday's closing price. The agreement is subject to shareholder and regulatory approval.
Under the terms of the deal, MindArrow's rich media messaging technologies will be integrated with Twelve Horses' electronic and print document management solutions. The end result would be a service that can allow companies to distribute bulk, personalized information via fax, mail or rich media e-mail. The combined technologies aim to create a single communications platform, ideally allowing client companies to transition from higher-cost printed materials to digital communications.
"We anticipate that this union will provide organizations with a powerful tool that will extend the core functionality of their CRM applications to improve communications with their customers in an informative, entertaining, and engaging manner," said Twelve Horses chief executive officer David Malone. "Until now, companies have traditionally deployed separate processes and systems for communicating online and offline."
If the deal goes through, Malone would join MindArrow's board of directors as executive chairman, and would assume the position of managing director of MindArrow Europe.
"By combining MindArrow's rich media messaging technologies with Twelve Horses' electronic and print document management solutions, our clients will be able to communicate with their customers, prospects and stakeholders using many different media and delivery methods." said MindArrow chief executive Robert Webber. "These two companies fit very well together, strategically and operationally."
Spokespeople from MindArrow said the acquisition also would accelerate its revenue growth and assist in its worldwide expansion. The company already has a presence in Asia, through its Fusionactive subsidiary.
Shares of ARRW closed up 19 percent on Thursday, at $4.5.