InfoUSA Offers to Buy Digital Impact

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InfoUSA continued its acquisition spree by announcing yesterday that it offered to buy Digital Impact Inc. for $2 a share. However, Digital Impact's board of directors has not responded to the offer.


The price represents a 38 percent premium over its closing price of $1.45 yesterday.


Hurt by spam, Digital Impact refocused on its integrated agency services last year, including search marketing through its acquisition of search marketing firm Marketleap. Its clients include Marriott, The Gap and Hewlett-Packard. Chairman/CEO William Park co-founded the company in 1997. It has offices in San Mateo, CA; New York and London.


Last month, Digital Impact said it lost $811,000 in its third quarter.


In a statement, infoUSA chairman/CEO Vin Gupta said the merger is necessary to "generate respectable operating margins in a very fragmented industry."


Earlier this month, infoUSA, Omaha, NE, acquired @Once, a retention-based e-mail technology firm, for an undisclosed sum. The company plans to integrate @Once, Portland, OR, with its existing e-mail subsidiary Yesmail, which is based in San Carlos, CA.


InfoUSA bought Yesmail from CMGI Inc. in March 2003, and it made several acquisitions in 2004, including service bureau Triplex Direct Marketing, business data firm OneSource Information Services Inc. and list firm Edith Roman Associates Inc.


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