Theglobe.com Buys DM Shop SendTec
Theglobe.com paid $6 million in cash, and it issued common and preferred stock to consummate the transaction. SendTec becomes a wholly owned subsidiary of theglobe.com, a publicly traded Internet communications and networking company in Fort Lauderdale, FL. SendTec chairman/CEO Paul Soltoff joins theglobe.com's board of directors.
The 8-year-old SendTec creates DM advertising for more than 100 clients, including Tickle.com, MasterFoods International, General Electric, Intuit, Euro-Pro and Real Networks. DRTV is an agency specialty.
SendTec earned pre-tax income of $1.9 million on revenue of $17.6 million in the first half of 2004. It projects a pre-tax profit of $3.5 million to $4 million on revenue of $35 million to $40 million for the year.
Theglobe.com, once a high-flying Internet media company, owns Voiceglo, a voice over Internet protocol firm that offers Internet telephony. Another subsidiary is Computer Games Magazine, a publication for consumers of online games. The portfolio also includes Chips & Bits, a games distribution firm. SendTec will handle marketing for Voiceglo.