DoubleClick, Abacus Agree to $1 Billion MergerOnline advertising agency DoubleClick Inc., New York, said today that it has agreed to acquire database provider Abacus Direct Corp., Broomfield, CO, in an effort to create a marketing vehicle that can produce targeted marketing solutions both online and off.
The terms of the $1 billion all-stock agreement call for DoubleClick to issue 1.05 common shares for each share of Abacus common stock. The transaction is expected to close late in the third quarter. On Friday shares of DoubleClick closed at just under $89, while Abacus shares closed at about $74.50.
The merger folds Abacus' off-line database modeling techniques into in the world of Internet marketing, where DoubleClick has operated exclusively. Abacus manages the Abacus Alliance, a database containing records from 1,100 merchandise catalogs that is used by direct marketers to predict purchasing behavior.
"DoubleClick's online ad serving technologies and media expertise, combined with Abacus' database marketing and customer targeting expertise, will enable customers to receive the most relevant and effective messages at the right time," said Tony White, founder, chairman and CEO of Abacus, in a prepared statement.
Kevin O'Connor, chairman and CEO of DoubleClick, will become chairman and CEO of the combined company, which will be called DoubleClick and will be based in New York. White will join DoubleClick's board and will oversee the expansion of Abacus's products into the Internet. Abacus will remain in Colorado.