Incentives-based e-commerce firm Cybergold, Inc. Monday went shopping
itself, purchasing e-mail marketer itarget.com for approximately $32 million in stock.
itarget.com is a permission e-mail marketing company that rewards its
members with a variety of items. The company boasts 1.3 million opt-in
members.
Cybergold (CGLD)
will acquire itarget.com for 1.85 million shares of Cybergold stock. The
acquisition is to be completed within 30 days as a pooling of interests. The
companies will combine their services to reach approximately six million
opt-in members.
“The acquisition adds a cadre of seasoned marketing professionals to the
Cybergold management team,” said Nat Goldhaber, chief executive
officer and president of Cybergold. “itarget.com’s membership base,
marketing skill set, and online premium delivery capabilities complement
Cybergold’s cash incentives and enhance the scope of services we provide to
our more than 400 advertisers.”
Monday’s acquisition adds to Cybergold’s list of properties. In November,
the company purchased SmartFrog.com
Inc., a company specializing in cash-back rewards for frequent buyers.
Both acquisitions build upon Cybergold’s incentives-based business model.
Cybergold is a provider of direct marketing and advertising tools,
specifically incentives programs that reward customers with cash and items
for responding to ads and programs.