ValueClick Buys Affiliate Ad Firm
The move, ValueClick's fifth effort in two months to expand its offerings, will bolster its presence in pay-for-results online advertising, arguably the fastest growing segment in the Internet ad industry.
Under the agreement, ValueClick, Westlake Village, CA, will pay $800,000 and issue 750,000 shares of its common stock for all shares of onResponse. In addition, it also will pay up to $16.6 million in stock based on onResponse's performance next year and in 2002.
The deal gives ValueClick possession of a company that conducts customized cost-per-lead and cost-per-acquisition campaigns for advertising and direct marketing agencies as well as 8,000 Web site publishers.
Claiming a reach of more than 20 countries worldwide and more than 20 percent of U.S. online households, ValueClick reportedly delivers more than 215,000 qualified visitors daily to advertisers such as Verizon, U.S. Postal Service, Providian Financial and Microsoft Corp.
With the addition of onResponse, ValueClick's client base will now include companies such as Excite@Home, Doubleday, NextCard and Intuit.
ValueClick only recently expanded its offerings to include opt-in e-mail marketing services and a performance-based wireless advertising network.
The company also bought StraightUp!, a move meant to improve tracking and reporting for advertising and publishing clients, and agreed to acquire ClickAgents for performance-based banner advertising options.