In two related transactions that cement Engage‘s commitment to its Japanese
operations, the CMGI-owned advertising
firm on Wednesday took a majority stake in Engage Technologies Japan and
purchased an ad network from its partner in the venture, Sumitomo Corp.
Engage Technologies Japan was formed back in July 1998, building on a cozy
relationship between parent company CMGI and the
Japanese firm. Sumimoto had made a $10 million dollar investment in CMGI in
1998, and, at that time, had a strategic partnership with ad network
Adsmart (which has since been folded into Engage).
In its latest moves, Engage has now increased its stake in Engage
Technologies Japan to 66.6 percent and installed Naomi Tomita as president
and chief executive officer. Tomita formerly headed up PictureTel Japan.
“This is a key milestone in our drive to become a truly global provider of
next generation online marketing solutions,” said Paul Schaut, president
and chief executive officer of Engage.
“This deal will allow us to synchronize Japan with our US strategy and
accelerate the roll out of our newer solutions to the Japanese market and
build on the success we’ve enjoyed in Japan.”
Meanwhile, Engage Technologies Japan has agreed to acquire Interactive
Solutions Inc. (ISI), an Internet advertising network owned by Sumitomo.
The deal will expand Engage’s online reach in Japan by giving it ISI’s
network of 55 Web sites, which average a delivery of over 25 million ad
impressions per month. Terms of the deal weren’t announced.