Online direct marketing agency LifeMinders Inc., which in May announced it was seeking a merger partner, has found one in New York-based Cross Media Marketing Corp.
Cross Media said yesterday that it would pay $68.1 million in cash and stock for LifeMinders. The stock portion of the deal is worth $2.43 a share to LifeMinders stockholders, who can elect to receive either all cash, all stock or a mix of 18 percent cash and 82 percent stock. The deal is contingent upon LifeMinders maintaining at least $50 million in cash and equivalents on Aug. 31. If it does not, Cross Media said it would deduct $1.75 million from the purchase price.
The deal is expected to close early in the fourth quarter.
LifeMinders, based in Herndon, VA, drastically scaled back its operations in May to concentrate on its personalized, targeted e-mail business. It said then that it was seeking a merger or buyout partner and that if it did not find one, it would go out of business. It reduced its workforce to about 35 from a high of 230.
Cross Media said Jonathan Bulkeley, LifeMinders’ chairman/CEO, will join the Cross Media board and will take a seat on its executive committee.