While infoUSA extended its tender offer for the outstanding shares of Digital Impact's common stock, the e-mail service provider entered discussions with other possible suitors last week.
InfoUSA, Omaha, NE, announced the extension of its offer of $2 per share March 24 and set a new deadline of 5 p.m. April 13, unless further extended. The first offer was set to expire March 23. As of the close of business March 23, a total of 2,642,314 shares of Digital Impact stock had been tendered, according to infoUSA.
Digital Impact, San Mateo, CA, said it received offers and entered into talks with other firms about possible mergers in a March 22 filing with the Securities and Exchange Commission.
The filing said in part, “The Company has received initial indications of interest from third parties [other than infoUSA] with respect to a possible business combination transaction with the Company. The Company has responded to these indications of interest and, consistent with the Company's fiduciary duties, has conducted meetings with interested third parties. The Company has entered into preliminary negotiations with respect to a possible transaction.”
However, the company acknowledged that no agreement had been reached, and its board of directors did not reveal the identities of the suitors.
A March 7 SEC filing revealed that, as of Feb. 28, there were 37,151,732 shares of Digital Impact stock issued and outstanding. The stock was trading at $2.18 at the close of business March 23.
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