ValueClick adds comparison shopping, search and foothold in China
ValueClick Inc. plans to acquire privately held MeziMedia Inc., an operator of U.S. comparison shopping web sites. The buy also nets ValueClick search engine optimization and marketing expertise and a presence in China.
The acquisition adds scale to ValueClick’s comparison shopping business, which includes the PriceRunner brand in Europe. In addition, MeziMedia has a proprietary search engine marketing platform and search engine optimization expertise and experience, which ValueClick expects to leverage across its businesses and clients.
MeziMedia also will give ValueClick a base in China with the former’s engineering and operations center in Shanghai. MeziMedia also has launched web sites in China for comparison shopping, coupons and search.
MeziMedia ranked fourth in the June 2007 comScore Inc. Retail - Comparison Shopping category with approximately 10.5 million U.S. unique visitors through its Smarter.com comparison shopping and CouponMountain.com online coupon web sites, ValueClick says.
Under the terms of the agreement, ValueClick will acquire all outstanding equity interests in MeziMedia for approximately $100 million in cash at the time of closing, and contingent cash consideration based on revenue and adjusted earnings before interest, taxes, depreciation and amortization performance from the closing date through December 31, 2009. The total will fall between $100 million and $352 million, depending on whether performance thresholds are met.
The transaction has been approved by the board of directors of each company and all MeziMedia stockholders. ValueClick anticipates the acquisition will close in August. Upon closing, MeziMedia’s management team will join ValueClick and continue to lead the MeziMedia business. MeziMedia will be included in ValueClick’s comparison shopping business segment.
MeziMedia was founded in 2001 and has approximately 160 employees in its Los Angeles-area headquarters, Shanghai and Tokyo offices. In 2006, MeziMedia generated approximately $40 million in revenue, ValueClick says.
ValueClick is an integrated online marketing services company, whose brands include Commission Junction, ValueClick Media, Mediaplex and PriceRunner.
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