NEW YORK DoubleClick Inc., the online advertising company, has signed a deal to buy MessageMedia Inc., an e-mail marketing firm, for $41 million of stock, DoubleClick said Friday.
It said the deal will broaden its client base and give it a licensed software solution. DoubleClick bought another e-mail marketing specialist, FloNetwork, in February.
MessageMedia delivers more than 100 million e-mails a month for more than 310 marketers, including E-Trade Group Inc., Intuit Inc., and FleetBoston Financial Corp. DoubleClick delivers more than 600 million e-mails per month for more than 240 clients, including Procter & Gamble, J. Crew, The Wall Street Journal Online, and Virgin MegaStores.com.
Under terms of the deal, DoubleClick is to issue 0.0436 of a share of its common stock for each share of MessageMedia common stock. Based on DoubleClicks 10-day average closing stock price through May 31, the exchange ratio equals a per share price of 60 cents, a 42% premium to MessageMedias 10-day average closing stock price. The transaction, which will be accounted for as a purchase, is subject to conditions, including MessageMedia stockholder approval. The deal is expected to close in the third quarter.