Traffix said yesterday it agreed to acquire search engine marketing company SendTraffic.com in a cash-and-stock deal worth about $5.4 million.
The deal would bring the Pearl River, NY, online direct marketing company a full-service SEM firm with more than 100 clients. SendTraffic helps businesses design and manage paid search and paid inclusion campaigns and makes their sites more likely to appear in the main body of search results.
The agreement calls for Traffix to pay $3.75 million in cash and $1.68 million in stock for SendTraffic's assets. The purchase price could be adjusted up to $5.75 million based on SendTraffic's financial performance. The deal is to close around July 1. Traffix said it expects SendTraffic to have $10 million in sales and $1 million operating income in the next 12 months.
SendTraffic founders Greg Byrnes and Craig Handleman agreed to five-year contracts to stay on with the company.
Larger marketing companies have begun adding search units. In December, online ad company aQuantive bought Go Toast for $13.9 million to offer a bid management tool. Last month, DoubleClick bought Performics for $65 million in a deal that will bring the company a search and affiliate marketing business.
