July 13, 1999 5:50 AM PDT
DoubleClick buys NetGravity
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In a bid to dominate Internet advertising, DoubleClick hopes the stock-for-stock transaction will help reach both companies' goals of providing the broadest possible infrastructure for ad management, data solutions, and media sales for Internet publishers, advertisers, and merchants.
DoubleClick provides global Internet advertising solutions for marketers and Web publishers, while NetGravity provides interactive online advertising and direct marketing software solutions.
Under the terms of the merger agreement between the two companies, DoubleClick will issue 0.28 shares of DoubleClick common stock for each share of NetGravity common stock. Based on yesterday's closing prices, the exchange ratio represents a per share price of $26.32--a 26 percent premium over NetGravity's 30-day average stock price.
The transaction, which will be accounted for as a pooling of interests, is subject to certain conditions, regulatory approval, and NetGravity stockholder approval. The transaction is expected to be completed in the early fourth quarter of 1999.
"Both companies have relationships with most major Web publishers and advertisers domestically and internationally," DoubleClick chief executive Kevin O'Connor said in a statement. "NetGravity's strengths combined with DoubleClick's technology infrastructure and Abacus Direct's data will create a company uniquely positioned to be the overall leader in targeted advertising."