CGI Closes Buyout of PrimaryAds
The Northbrook, IL, company already has eight offline and online marketing subsidiaries, including WebSourced Inc., a search optimization and campaign management company, and KowaBunga Marketing Inc., which provides software for affiliate and search engine marketing. CGI will seek formal shareholder approval in June to change its legal name to Think Partnership Inc.
PrimaryAds, North Plainfield, NJ, focuses on a cost-per-action model, letting advertisers pay only when a sale is made or a lead is generated through its offers. The company has grown rapidly and earned more than $921,000 in the first quarter.
Acquiring all of PrimaryAds' stock for $10 million in cash, CGI bought the company to become a leader in affiliate marketing, company officials said.
"The addition of affiliate marketing to Think Partnership was one of our primary expansion targets for 2005," said Scott Mitchell, CEO of CGI's Cherish subsidiary. He added that affiliate marketing is one of the fastest-growing revenue sources for companies.
Mitchell also hinted at future acquisition targets to expand its online advertising and marketing presence.
Christine Blank covers online marketing and advertising, including e-mail marketing and paid search, for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters