ValueClick Inc. will expand its stable of e-marketing services by acquiring Web Clients for its lead-generation and e-mail marketing business, and it’s building out its e-commerce infrastructure by acquiring ink products retailer E-Babylon, Value Click said.
ValueClick will pay about $141 million in cash and stock for privately held Web Marketing Holdings Inc., which operates under the Web Clients name. Founded in 1998 and based in Harrisburg, PA, Web Clients provides online lead-generation services focused mostly on cost-per-acquisition and cost-per-lead pricing models. Web Clients has developed online content for lead generation on more than 100 promotional web sites including AmericanBeautySweepstakes.com and DesignerBag4Free.com. It also generates leads through an affiliate network of more than 1,500 web sites and a database of more than 30 million opt-in e-mail profiles.
In 2004, Web Clients served more than 190 clients, generated revenue of about $59 million and was profitable, ValueClick said.
ValueClick, based in Westlake Village, CA, said Web Clients will complement its existing e-marketing services offered through its ValueClick Media online advertising unit, its affiliate and e-mail marketing unit Commission Junction, and marketing management unit Mediaplex. “Web Clients' lead-generation products, driven primarily through traffic from its own web sites, will be synergistic and a great fit with our ValueClick Media, Hi-Speed Media, Commission Junction, Search123, and Pricerunner businesses," said James Zarley, chairman and CEO of ValueClick.
ValueClick will pay about $14.7 million in cash for E-Babylon and its 24,000-square-foot fulfillment center. E-Babylon, which had $17 million in revenue and was profitable in 2004, offers more than 1,300 products, mostly through its 123 Inkjets.com and 411inkjets.com.
Back...
