RelationServe Media to Buy SendTec for $50M
Online marketing services provider RelationServe Media Inc. will pay $50 million in cash and stock for SendTec Inc., a St. Petersburg, FL, direct marketing agency wholly owned by theglobe.com.The combined agency this year is expected to generate operating income of $10 million on pro-forma revenue of $70 million. Last year's pro-forma numbers for the combined entity were $3.5 million in operating income on revenue of $47 million.
SendTec loses its name in the deal. SendTec CEO Paul Soltoff, president Eric Obeck and chief financial officer Donald Gould Jr. will hold those titles at RelationServe, Fort Lauderdale, FL.
Mandee Heller Adler, RelationServe's current CEO, will run the company's online marketing business as president of wholly owned subsidiary RelationServeAccess. Ohad Jehassi, current chief operating officer, is the new president of another RelationServe subsidiary, friendsand.com. Warren Musser remains chairman of RelationServe.
The deal is to close in 60 days.
