DoubleClick Inc. says it will acquire search engine marketer Performics for up to $65 million.
The companies say the acquisition will benefit DoubleClick's client base of marketers, agencies and Web publishers by offering them better marketing effectiveness through more marketing solutions.
The agreement represents an all-cash deal totaling $58 million, plus an earn-out of up to $7 million for a potential total of $65 million. The deal is expected to close by mid-June.
In addition to Performics' search engine marketing and affiliate marketing products, following the close current Performics customers will also have access to DoubleClick's performance-oriented marketing solutions, including online ad management, email and website analytics, through one partner.
Eleven of Performics' top 15 customers, in terms of 2003 revenue, are also DoubleClick customers. In addition, Performics and DoubleClick are each leaders in the catalog sector, and the acquisition will expand DoubleClick's full suite of online and offline marketing tools to the shared customer base of catalogers.
"At Performics, we have prided ourselves on building world-class offerings in both affiliate marketing and search engine marketing" says James Crouthamel, CEO of Performics. "By combining our products and expertise with that of DoubleClick, our shared clients both domestically and internationally will benefit from a premier collection of online advertising and data marketing solutions -- both in the short term and into the future."
Read iMedia Search Columnist Kevin Ryan's analysis of this acquisition.