Digital Impact Inc.'s board of directors recommended that stockholders reject infoUSA's unsolicited tender offer to buy their shares for $2 each, the San Mateo, CA, company said yesterday.
Omaha, NE-based infoUSA commenced the offer for all outstanding shares of common stock Feb. 24 after its Feb. 10 offer to buy the company went unanswered. The offer was executed through DII Acquisition Corp., a wholly owned subsidiary of infoUSA, and is to expire at midnight ET March 23, unless extended.
Digital Impact advised stockholders not to tender their shares to infoUSA, claiming that the firm would be able to deliver long-term value in excess of the offer. Digital Impact offers integrated digital marketing services.
“The Digital Impact board has thoroughly considered infoUSA's unsolicited tender offer and has unanimously rejected the offer,” Digital Impact chairman/CEO William Park said in a statement. “The board believes that the offer is financially inadequate, opportunistic and fails to reflect the underlying value of the company.”
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