iVillage to Acquire Promotions.com in $13.3M Deal
Promotions.com shareholders will receive a combination of iVillage common shares and cash. IVillage will issue about $3.5 million in common stock and pay about $9.8 million in cash. Since Promotions.com has about $10 million in the bank, the net outlay for iVillage is the $3.5 million, or about 1.5 million shares, of common stock.
The deal is expected to close in the first quarter.
Promotions.com, based in New York, develops online promotions for marketers and helps them integrate the promotions with their offline activities. The company also operates Webstakes.com, an online sweepstakes site. Clients include AOL Time Warner, Citibank, Kraft Foods Inc. and NBC.
"Promotions.com will continue to provide its services to its promotion and advertising clients as a distinct brand under the iVillage umbrella," said Steven Krein, the chairman/CEO of Promotions.com.
IVillage said the acquisition of Promotions.com will enable it to extend its marketing services offered to its advertisers. It also acquires Promotions.com's iDialog survey technology, which targets questions to audience members during the sweepstakes registration process.