DoubleClick Inc. announced that it has signed a definitive agreement to be acquired by Hellman & Friedman LLC, a private equity firm. The deal is expected to be completed in the third quarter and valued at approximately $1.1 billion.
JMI Equity, a venture capital firm, will be investing alongside with Hellman & Friedman. Following the closing, Kevin Ryan will step down as DoubleClick CEO to pursue other opportunities. At the closing, David Rosenblatt will continue to oversee the TechSolutions division as its CEO; Brian Rainey will continue to lead the DataSolutions division as its CEO.
"This transaction provides great value to our stockholders and underscores the strength of our industry-leading position and DoubleClick's business model," says Kevin Ryan, chief executive officer, DoubleClick.
"This will be considered a turning point in online advertising -- one that will trigger an accelerated review of new technologies by agencies and advertisers to focus on sophisticated analytics and precise targeting of consumer messages to improve marketing efficiency," says Rich Person, chairman and chief executive officer, Poindexter Systems.
"DoubleClick has two outstanding franchises with strong presence in their marketplaces. They have powerful brand names, experienced management, and dedicated and skilled employees. We look forward to partnering with the DoubleClick team to help realize the company's significant opportunities for growth in both its online advertising and marketing and data businesses," says Philip Hammarskjold, managing director, Hellman & Friedman.
DoubleClick says it plans to file with the Securities and Exchange Commission and mail to its stockholders a proxy statement in connection with the transaction
Last week DoubleClick announced its first quarter 2005 results. DoubleClick recorded $76.3 million in revenue for the Q1 2005 compared to $68.0 million in the year-ago period.
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