Acxiom Corp., Little Rock, AR, said Friday that it took control of online marketing services provider Digital Impact Inc.
Acxiom announced its intent to buy Digital Impact on March 28 and made a $140 million tender offer of $3.50 per share of common stock. As of the April 28 expiration of the initial offer, 28,104,957, or 72.62 percent, of the outstanding shares had been tendered and notices of guarantee had been received for another 7,843,158 shares, bringing the total to 92.9 percent.
Acxiom subsidiary Adam Merger Corp. announced a subsequent $3.50 per share offering for remaining shares Friday that expires at 5 p.m. ET on May 5. The deal is expected to be complete after the second offer expires. Acxiom will then name three representatives to the Digital Impact board of directors to replace members who resigned.
When the deal was first announced, Acxiom company leader Charles D. Morgan said a growing need for integrated online and offline marketing solutions sparked the acquisition. The company plans to merge its existing digital, online and related capabilities with Digital Impact, San Mateo, CA, though it will retain its offices and leadership.
Digital Impact had been the target of an unsolicited takeover attempt by infoUSA, Omaha, NE, which had offered $2 per share for the stock it did not already own.
Meanwhile, Digital Impact filed a lawsuit March 8 alleging that infoUSA-owned Yesmail is infringing on its e-mail technology patent. The lawsuit, filed in the U.S. District Court Northern District of California San Francisco Division, alleges that Yesmail infringed and continues to infringe on Digital Impact's patent, “Method and System for Remotely Sensing the File Formats Processed by an E-Mail Client.”
Yesmail, San Carlos, CA, is part of infoUSA's Donnelley Group. Digital Impact seeks damages to three times the amount adequate and legal fees. InfoUSA has not responded publicly to the lawsuit.
Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters