Online advertising firm DoubleClick Inc. Monday added marketing expertise to its list of services by acquiring direct marketing company Abacus Direct Corp. in a stock deal worth approximately $1 billion.
Abacus is an information and research provider to the direct marketing industry and manages a proprietary database of consumer catalog buying behavior. With the acquisition, DoubleClick hopes it will be able to tell companies which online properties will be the best match for their advertising dollars.
Under the terms of the agreement, DoubleClick will issue 1.05 shares of its common stock for each share of Abacus common stock. Based on June 11 closing prices, the exchange ratio represents a per share
price of $93.25, a 25.1 percent premium to Abacus shareholders. The transaction is expected to be completed by the end of the third quarter.
Abacus will remain in Colorado. DoubleClick is headquartered in New York.
Kevin O’Connor, DoubleClick’s chairman and chief executive officer, will become chairman of the combined firm. Tony White, Abacus’ chairman and CEO, will join DoubleClick’s board and oversee the expansion of Abacus’
product lines onto the Internet.
“By combining our two companies we will offer clients comprehensive, full service marketing and
advertising solutions,” O’Connor said.
“DoubleClick’s online ad serving technologies and media expertise, combined with Abacus’ database marketing and customer targeting expertise, will enable consumers to receive the most
relevant and effective messages at the right time,” White added.