Monday, January 25, 2010
MediaTrust acquires Kenzei
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100119/FREE/100119866/1078/newsletter011
MediaTrust, a digital performance marketing company, announced the acquisition of Kenzei, San Francisco, which provides conversion and e-mail marketing services. Financial terms of the deal were not disclosed. Under the acquisition, Kenzei’s conversion marketing and e-mail remarketing solutions will be integrated into the MediaTrust offering and marketed as MediaTrust Conversion Solutions.
MediaTrust, a digital performance marketing company, announced the acquisition of Kenzei, San Francisco, which provides conversion and e-mail marketing services. Financial terms of the deal were not disclosed. Under the acquisition, Kenzei’s conversion marketing and e-mail remarketing solutions will be integrated into the MediaTrust offering and marketed as MediaTrust Conversion Solutions.
Magna: Ad spending to fall this quarter before stabilizing
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100120/FREE/100129996/1078/newsletter011
U.S. advertising expenditures are forecast to total $36.8 billion this quarter, down 3% from $38.0 billion for the same period last year, according to Magna, the Interpublic Group of Cos. forecasting unit.
However, Magna said, this will be the last quarter of ad spending decline in the current recession.
U.S. advertising expenditures are forecast to total $36.8 billion this quarter, down 3% from $38.0 billion for the same period last year, according to Magna, the Interpublic Group of Cos. forecasting unit.
However, Magna said, this will be the last quarter of ad spending decline in the current recession.
R/GA: Digital Agency of the Year '09
http://www.adweek.com/aw/content_display/special-reports/agency-of-the-year/e3i255b591c91282724ad782cd1eafa0e45?pn=1
Already envied for its work for brands like Nike, Verizon and Nokia, R/GA had a gangbusters new business year in 2009, scooping up major wins with Walmart and MasterCard. It added to its bounty Taco Bell and lead agency duties for Ameriprise Financial. At a time when shops were treading water, R/GA grew 5 percent, laid the groundwork for offices in Singapore and Brazil, and expanded its offices in London and San Francisco.
Already envied for its work for brands like Nike, Verizon and Nokia, R/GA had a gangbusters new business year in 2009, scooping up major wins with Walmart and MasterCard. It added to its bounty Taco Bell and lead agency duties for Ameriprise Financial. At a time when shops were treading water, R/GA grew 5 percent, laid the groundwork for offices in Singapore and Brazil, and expanded its offices in London and San Francisco.
Tuesday, January 19, 2010
Covario buys Netconcepts
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100113/FREE/100119966/1078/newsletter011
Covario Inc., which specializes in automated search-engine optimization, has acquired Netconcepts, a company that offers complementary automated SEO technology.
Covario will integrate Netconcepts’ GravityStream technology into its own SEO consulting practice and Organic Search Insight software. It said its analytics and reporting technology would be augmented by Netconcepts’ tools allowing marketers to make improvements based on those analytics.
Financial terms of the deal were not disclosed.
Covario Inc., which specializes in automated search-engine optimization, has acquired Netconcepts, a company that offers complementary automated SEO technology.
Covario will integrate Netconcepts’ GravityStream technology into its own SEO consulting practice and Organic Search Insight software. It said its analytics and reporting technology would be augmented by Netconcepts’ tools allowing marketers to make improvements based on those analytics.
Financial terms of the deal were not disclosed.
LSF Interactive acquires ClearGauge
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100113/FREE/100119964/1078/newsletter011
LSF Interactive has acquired interactive agency ClearGauge, Chicago.
Financial terms of the deal were not disclosed.
Under the acquisition, the ClearGauge brand will be integrated into LSF Interactive. Karen Breen Vogel, previously president of ClearGauge, will serve as VP-business development for LSF Interactive’s b-to-b division.
The former Chicago office of ClearGauge will remain and serve as LSF Interactive’s Midwest presence.
LSF Interactive has acquired interactive agency ClearGauge, Chicago.
Financial terms of the deal were not disclosed.
Under the acquisition, the ClearGauge brand will be integrated into LSF Interactive. Karen Breen Vogel, previously president of ClearGauge, will serve as VP-business development for LSF Interactive’s b-to-b division.
The former Chicago office of ClearGauge will remain and serve as LSF Interactive’s Midwest presence.
Unica acquires e-mail delivery company Pivotal Veracity
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100114/FREE/100119950/1078/newsletter011
Marketing management software company Unica Corp. has acquired Pivotal Veracity, an e-mail service provider whose technology helps improve e-mail deliverability, analysis and management.
The $17.8 million deal will add Pivotal Veracity's capabilities to Unica's marketing suite. Besides improving deliverability via readability tests and other means, Pivotal's technology also helps e-mail be properly rendered across a variety of devices and browsers, and minimizes the risk of e-mail being blacklisted, Unica said.
Marketing management software company Unica Corp. has acquired Pivotal Veracity, an e-mail service provider whose technology helps improve e-mail deliverability, analysis and management.
The $17.8 million deal will add Pivotal Veracity's capabilities to Unica's marketing suite. Besides improving deliverability via readability tests and other means, Pivotal's technology also helps e-mail be properly rendered across a variety of devices and browsers, and minimizes the risk of e-mail being blacklisted, Unica said.
Gartner: Mobile to dominate, Internet marketing at risk
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100115/FREE/100119942/1078/newsletter011
Market research company Gartner is projecting that mobile phones will be the dominant Web access device by 2013, outstripping computers in total units in use.
The research company forecast an installed base of 1.82 billion enhanced phones with browsers three years from now, compared with 1.78 billion computers in use, and warned that companies neglecting to optimize their sites for mobile devices may be at a competitive disadvantage.
“Gartner's Top Predictions for IT Organizations and Users, 2010 and Beyond: A New Balance,” also anticipated that the use of the Internet for marketing purposes will likely become regulated in North America and Europe, and possibly elsewhere, by 2015 due to overuse and abuse by marketers.
“It is not a question of whether marketers will abuse the Internet channel and annoy customers, but rather when they will do so enough to ... push legislation that regulates marketing activities on the Internet,” wrote Gartner analyst Kimberly Collins.
Market research company Gartner is projecting that mobile phones will be the dominant Web access device by 2013, outstripping computers in total units in use.
The research company forecast an installed base of 1.82 billion enhanced phones with browsers three years from now, compared with 1.78 billion computers in use, and warned that companies neglecting to optimize their sites for mobile devices may be at a competitive disadvantage.
“Gartner's Top Predictions for IT Organizations and Users, 2010 and Beyond: A New Balance,” also anticipated that the use of the Internet for marketing purposes will likely become regulated in North America and Europe, and possibly elsewhere, by 2015 due to overuse and abuse by marketers.
“It is not a question of whether marketers will abuse the Internet channel and annoy customers, but rather when they will do so enough to ... push legislation that regulates marketing activities on the Internet,” wrote Gartner analyst Kimberly Collins.
Firms Hold Fast to Snail Mail Marketing
http://online.wsj.com/article/SB20001424052748703481004574646904234860412.html#mod=dist_smartbrief?mod=dist_smartbrief
The affordability of e-marketing, along with the explosion of social media and the desire to trim costs in the recession, has prompted many small companies like Per Annum to slash traditional direct-mail budgets. U.S. consumers received about 5.2 billion pieces of direct mail in the third quarter of 2009, a 27% decline compared with 7.1 billion in the same period a year earlier, according to Mintel Comperemedia, a research firm that tracks direct-mail marketing.
However, some entrepreneurs who were quick to write off direct mail as too pricey or passé are finding it's not so easy to dismiss.
Ms. Settle says that at first she blamed the economy for the dropoff, until she "started hearing from customers that they never got their 'reminder' in the mail." Ms. Settle quickly sent a postcard mailing in June, which recouped the 25% loss, she says.
Costs are still taken into account. Many entrepreneurs find that the boiler-plate methods of the past—such as purchasing mailing lists and sending fliers or coupons to a mass audience—often aren't cost-effective. Instead, business owners are creating personalized mailings, which may include special offers or other valuable information, and sending them to a hand-picked list of current and prospective customers.
The affordability of e-marketing, along with the explosion of social media and the desire to trim costs in the recession, has prompted many small companies like Per Annum to slash traditional direct-mail budgets. U.S. consumers received about 5.2 billion pieces of direct mail in the third quarter of 2009, a 27% decline compared with 7.1 billion in the same period a year earlier, according to Mintel Comperemedia, a research firm that tracks direct-mail marketing.
However, some entrepreneurs who were quick to write off direct mail as too pricey or passé are finding it's not so easy to dismiss.
Ms. Settle says that at first she blamed the economy for the dropoff, until she "started hearing from customers that they never got their 'reminder' in the mail." Ms. Settle quickly sent a postcard mailing in June, which recouped the 25% loss, she says.
Costs are still taken into account. Many entrepreneurs find that the boiler-plate methods of the past—such as purchasing mailing lists and sending fliers or coupons to a mass audience—often aren't cost-effective. Instead, business owners are creating personalized mailings, which may include special offers or other valuable information, and sending them to a hand-picked list of current and prospective customers.
MediaTrust Boosts Email Offerings With Acquisition
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=120733
MediaTrust, a New York digital agency with an emphasis in direct-response advertising, announced Monday it has purchased a San Francisco agency that works in email marketing, particularly in the retail space. Terms were not disclosed for the acquisition of the firm, Kenzei.
One of Kenzei's core competencies is retargeting consumers who have begun an online purchase process and placed items in a shopping cart, but then abandoned the track midstream. The agency looks to help retailers bolster conversion rates through automated email or phone messaging.
Plans call for the companies to meld tools into a MediaTrust Conversion Solutions offering for performance-based campaigns.
MediaTrust CEO Peter Bordes stated his company has "admired" Kenzei's "innovations in helping advertisers increase conversion rates after consumers have abandoned forms and shopping carts."
Mike Stocker, Kenzei CEO, will segue to MediaTrust as vice president of strategic development.
MediaTrust bills itself as taking a "pay-for-results" ethic and works with advertisers but also publishers. It says its "cost-per-action" system involves campaigns with paid search, social media and other tactics.
MediaTrust, a New York digital agency with an emphasis in direct-response advertising, announced Monday it has purchased a San Francisco agency that works in email marketing, particularly in the retail space. Terms were not disclosed for the acquisition of the firm, Kenzei.
One of Kenzei's core competencies is retargeting consumers who have begun an online purchase process and placed items in a shopping cart, but then abandoned the track midstream. The agency looks to help retailers bolster conversion rates through automated email or phone messaging.
Plans call for the companies to meld tools into a MediaTrust Conversion Solutions offering for performance-based campaigns.
MediaTrust CEO Peter Bordes stated his company has "admired" Kenzei's "innovations in helping advertisers increase conversion rates after consumers have abandoned forms and shopping carts."
Mike Stocker, Kenzei CEO, will segue to MediaTrust as vice president of strategic development.
MediaTrust bills itself as taking a "pay-for-results" ethic and works with advertisers but also publishers. It says its "cost-per-action" system involves campaigns with paid search, social media and other tactics.
Tuesday, January 12, 2010
Glencoe Capital's Michigan Opportunities Fund Acquires Novo 1.
Glencoe Capital's Michigan Opportunities Fund has acquired the inbound telephone customer service business and certain other assets of Novo 1, in a move that promises to create more than 300 new jobs in the State of Michigan, announced David S. Evans, Chairman and Chief Investment Officer of Glencoe Capital.
"Our investment in Novo 1 continues the Michigan Opportunities Fund's strategy to invest in growing companies that can generate attractive returns to our investors, while promoting business growth and fostering job creation that together help improve the economic vitality of the State of Michigan," said Evans.
Formed in 2000 and based in Waukesha, Wis., Novo 1 is a leading provider of inbound and outbound customer interaction solutions to clients across industries. With revenues of $43 million last year, Novo 1 ranked as the 25th-largest inbound services provider in the domestic US in 2008, according to Customer Inter@ction Solutions magazine.
http://www.allbusiness.com/company-activities-management/operations-customer/13207269-1.html
"Our investment in Novo 1 continues the Michigan Opportunities Fund's strategy to invest in growing companies that can generate attractive returns to our investors, while promoting business growth and fostering job creation that together help improve the economic vitality of the State of Michigan," said Evans.
Formed in 2000 and based in Waukesha, Wis., Novo 1 is a leading provider of inbound and outbound customer interaction solutions to clients across industries. With revenues of $43 million last year, Novo 1 ranked as the 25th-largest inbound services provider in the domestic US in 2008, according to Customer Inter@ction Solutions magazine.
http://www.allbusiness.com/company-activities-management/operations-customer/13207269-1.html
Allant Group acquired by management and MidOcean Partners
http://www.allantgroup.com/pdf/AllantMidOceanAnnouncement_000.pdf
The Allant Group, a leading provider of marketing optimization solutions that combines database management, analytics and predictive intelligence to maximize targeted marketing solutions for its growing list of Fortune 100 clients, announced today that it has been acquired by its Management Team and MidOcean Partners (“MidOcean”), a leading private equity firm with offices in New York and London.
The Allant Group, a leading provider of marketing optimization solutions that combines database management, analytics and predictive intelligence to maximize targeted marketing solutions for its growing list of Fortune 100 clients, announced today that it has been acquired by its Management Team and MidOcean Partners (“MidOcean”), a leading private equity firm with offices in New York and London.
Rosetta acquired Wishbone
http://lindsaygoldbergllc.com/news/pdf/010810.pdf
Rosetta, the nation’s largest independent digital marketing agency, and Wishbone, the award-winning professional healthcare marketing agency, today announced the acquisition of Wishbone by Rosetta. Purchase price and terms of the deal were not disclosed.
Wishbone, Med Ad News’ Category III 2009 Agency of the Year winner, had revenues of over $15 million in 2009, up over 20% versus a year ago. Wishbone’s major clients include Baxter, CardioNet, Dey, Genzyme, Meda, Novartis, Otsuka, and Pfizer. Rosetta, one of Advertising Age’s 10 Largest Digital Agencies, is a $131 million digital agency with expertise across multiple markets including healthcare, banking, insurance, consumer products and retail. Rosetta’s healthcare business grew by 33% in 2009. Among its current clients are Allergan, Amgen, BMS, Covidien, Johnson & Johnson, Medco, Novartis, Otsuka, Shire and Takeda.
Rosetta, the nation’s largest independent digital marketing agency, and Wishbone, the award-winning professional healthcare marketing agency, today announced the acquisition of Wishbone by Rosetta. Purchase price and terms of the deal were not disclosed.
Wishbone, Med Ad News’ Category III 2009 Agency of the Year winner, had revenues of over $15 million in 2009, up over 20% versus a year ago. Wishbone’s major clients include Baxter, CardioNet, Dey, Genzyme, Meda, Novartis, Otsuka, and Pfizer. Rosetta, one of Advertising Age’s 10 Largest Digital Agencies, is a $131 million digital agency with expertise across multiple markets including healthcare, banking, insurance, consumer products and retail. Rosetta’s healthcare business grew by 33% in 2009. Among its current clients are Allergan, Amgen, BMS, Covidien, Johnson & Johnson, Medco, Novartis, Otsuka, Shire and Takeda.
Harland Clarke Expands Direct and Digital Marketing Offerings
Harland Clarke Corp. has announced two recent acquisitions that will immediatelybroaden its portfolio of direct and digital marketing services.
In December,Harland Clarke acquired Protocol Integrated Marketing Services (IMS), thefull-service direct marketing division of Protocol Global Solutions, as well asSubscriberMail, the award-winning Email Service Provider (ESP) and technologyfirm. Protocol IMS adds enhanced database marketing, inbound and outbound B2Btelemarketing services with B2C capabilities, and a successful track record inmultiple industries to Harland Clarke`s strong analytics, creative andproduction capabilities.
SubscriberMail brings proven on-demand email marketingsolutions, in addition to a patented technology platform recognized and used byleading organizations across multiple industries. "When combined with Harland Clarke`s current capabilities, these additionalsolutions will allow us to provide end-to-end direct and digital marketingsupport to help our clients meet their growth objectives," said Harland ClarkeHoldings Corp. President and Chief Executive Officer Chuck Dawson. "We know these same solutions can be effective for other organizations in the broader marketplace, as well."
http://www.reuters.com/article/idUS212058+07-Jan-2010+BW20100107
http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=20100107007115&newsLang=en
http://sanantonio.bizjournals.com/sanantonio/stories/2010/01/04/daily35.html
Wednesday, January 6, 2010
Marketers spend record amount on branded content
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189998/1078/FREE
Marketers spent more on branded content in 2009 than in any previous measured year, according to a study, "The ContentWise and Custom Publishing Councils' 2009 Spending: A Look at How Corporate America Invests in Branded Content," released Thursday by the Custom Publishing Council.
The CPC said that branded content was double that of 2008 and the highest amount since the study was first conducted in 2003. The CPC said that per-company spending among companies surveyed totaled $1.8 million, with 51% spent on custom print publications, 27% on Internet media and 22% on categories including video and audio, which were measured for the first time this year. According to the survey, branded content accounted for 32% of overall marketing, advertising and communications budgets.
Marketers spent more on branded content in 2009 than in any previous measured year, according to a study, "The ContentWise and Custom Publishing Councils' 2009 Spending: A Look at How Corporate America Invests in Branded Content," released Thursday by the Custom Publishing Council.
The CPC said that branded content was double that of 2008 and the highest amount since the study was first conducted in 2003. The CPC said that per-company spending among companies surveyed totaled $1.8 million, with 51% spent on custom print publications, 27% on Internet media and 22% on categories including video and audio, which were measured for the first time this year. According to the survey, branded content accounted for 32% of overall marketing, advertising and communications budgets.
2009 Promo Industry Trends Report
In a year challenged by battering economic conditions and skittish consumers, marketers are hanging on. Promo's annual report reveals that even though most categories experienced decelerating growth in 2009, spending was projected to grow, even if ever so slightly, for P-O-P, coupons, loyalty programs, sampling and games, contests and sweepstakes. Two trouble spots were premiums and licensing, which experienced significant declines. Overall spending on these consumer promotions was projected to dip -0.7% to $45.8 billion for 2009, according to the VSS Communications Industry Forecast.
Another bright spot, branded entertainment — which includes event sponsorship and marketing, paid product placement and advergaming and Webisodes — was forecast to grow 3.6% in 2009 to $22 billion, VSS said. The Promo report also takes a look at other categories used by promotion marketers, including social and mobile marketing, e-mail and direct mail.
This year, promotion will continue to benefit from the move away from mass media and advertising to alternative strategies that target consumers where and when they prefer. http://promomagazine.com/09-industry-trends-report/
Another bright spot, branded entertainment — which includes event sponsorship and marketing, paid product placement and advergaming and Webisodes — was forecast to grow 3.6% in 2009 to $22 billion, VSS said. The Promo report also takes a look at other categories used by promotion marketers, including social and mobile marketing, e-mail and direct mail.
This year, promotion will continue to benefit from the move away from mass media and advertising to alternative strategies that target consumers where and when they prefer. http://promomagazine.com/09-industry-trends-report/
Apple to Acquire Mobile-Ad Network Quattro Wireless
http://adage.com/digital/article?article_id=141287
Apple Computer is jumping on the mobile-advertising bandwagon and will acquire mobile ad network Quattro Wireless in a deal valued between $250 million to $275 million, according to industry executives who have been briefed by bankers.
http://bits.blogs.nytimes.com/2010/01/05/apple-is-said-to-buy-mobile-ad-company/?emc=eta1
Its clients include Ford, Procter & Gamble and Visa, and the ads range from full-blown applications to small brand ads on a group of Web sites that include those of Time, CBS Interactive and Gawker Media. Quattro places the ads on iPhones, Android devices and other smartphones.
Apple Computer is jumping on the mobile-advertising bandwagon and will acquire mobile ad network Quattro Wireless in a deal valued between $250 million to $275 million, according to industry executives who have been briefed by bankers.
http://bits.blogs.nytimes.com/2010/01/05/apple-is-said-to-buy-mobile-ad-company/?emc=eta1
Its clients include Ford, Procter & Gamble and Visa, and the ads range from full-blown applications to small brand ads on a group of Web sites that include those of Time, CBS Interactive and Gawker Media. Quattro places the ads on iPhones, Android devices and other smartphones.
VeriFone buys taxi ad business from Clear Channel
http://finance.yahoo.com/news/VeriFone-buys-taxi-ad-apf-1949909220.html?x=0&.v=2
VeriFone Holdings Inc. said Monday it has acquired the taxi advertising business of Clear Channel Outdoor Holdings Inc.
VeriFone, which provides electronic payment services, said the deal gives it 5,000 screens to sell advertising on in New York City cabs, adding to its network already of 6,500 screens.
The company did not release financial details of the acquisition. It said the deal will not be material to its financial results this year.
VeriFone Holdings Inc. said Monday it has acquired the taxi advertising business of Clear Channel Outdoor Holdings Inc.
VeriFone, which provides electronic payment services, said the deal gives it 5,000 screens to sell advertising on in New York City cabs, adding to its network already of 6,500 screens.
The company did not release financial details of the acquisition. It said the deal will not be material to its financial results this year.
Gartner Acquires Burton Group
http://finance.yahoo.com/news/Gartner-Acquires-Burton-bw-4099669376.html?x=0&.v=1
Gartner, Inc. (NYSE: IT - News), the leading provider of research and analysis on the global information technology industry, today announced that, on December 30, 2009, it acquired Burton Group, Inc. for approximately $56 million in cash. Burton Group is a leading research and advisory services firm that focuses on providing practical, technically in-depth advice to front-line IT professionals. The firm has approximately 41 research analysts, 40 sales and client service associates, and projected 2009 revenue of $30 million.
Gartner, Inc. (NYSE: IT - News), the leading provider of research and analysis on the global information technology industry, today announced that, on December 30, 2009, it acquired Burton Group, Inc. for approximately $56 million in cash. Burton Group is a leading research and advisory services firm that focuses on providing practical, technically in-depth advice to front-line IT professionals. The firm has approximately 41 research analysts, 40 sales and client service associates, and projected 2009 revenue of $30 million.
Monday, January 4, 2010
ReachLocal files for $100 mln IPO
Internet marketing company ReachLocal Inc on Tuesday filed for an initial public offering of up to $100 million.
The Woodland Hills, California-based company, which provides services to maximize the effectiveness of online advertising by small and medium businesses, said it would use proceeds from the offering for working capital and general corporate purposes. The proceeds would also go to pay a deferred obligation of $6.1 million in connection with its ReachLocal Australia acquisition, the company said.
In September the company acquired the roughly 53 percent of its Australia operations that it did not already own.
ReachLocal recorded a one-time $16.2 million non-cash gain in connection with its acquisition of ReachLocal Australia but said in a regulatory filing it has accumulated a deficit of roughly $3.3 million after the gain, and expects to report net operating losses in the foreseeable future.
The company's shareholders include funds affiliated with VantagePoint Venture Partners, Rho Ventures and Galleon Group LLC.
http://www.reuters.com/article/idUSN2213106920091223
Limelight to buy digital ad firm for $110 mln
http://www.reuters.com/article/idUSSGE5BK0EY20091221
Limelight Networks Inc (LLNW.O), which helps speed delivery of Web content, agreed to acquire privately held interactive digital advertising provider EyeWonder Inc for up to $110 million in cash and stock.
The combination is expected to enable Limelight to better participate in the rapidly growing rich media, video, mobile and web TV advertising sectors.
Limelight will pay about $62 million in cash, subject to adjustment based on EyeWonder's financial condition at closing, and about 12.74 million common shares, Limelight said in a statement.
Up to 4.86 million Limelight common shares will be issuable in 2011 if EyeWonder achieves certain financial results in 2010, the company said.
Atlanta, Georgia-based EyeWonder develops monetization services that help advertisers, interactive agencies and content publishers create, build, track and optimize rich media and interactive video advertising campaigns.
EyeWonder's advertising serving platform is projected to service over $500 million in media spend globally in 2009.
EyeWonder was advised on the transaction by Madison Alley Global Ventures.
The transaction is expected to close in the first half of 2010.
Limelight Networks Inc (LLNW.O), which helps speed delivery of Web content, agreed to acquire privately held interactive digital advertising provider EyeWonder Inc for up to $110 million in cash and stock.
The combination is expected to enable Limelight to better participate in the rapidly growing rich media, video, mobile and web TV advertising sectors.
Limelight will pay about $62 million in cash, subject to adjustment based on EyeWonder's financial condition at closing, and about 12.74 million common shares, Limelight said in a statement.
Up to 4.86 million Limelight common shares will be issuable in 2011 if EyeWonder achieves certain financial results in 2010, the company said.
Atlanta, Georgia-based EyeWonder develops monetization services that help advertisers, interactive agencies and content publishers create, build, track and optimize rich media and interactive video advertising campaigns.
EyeWonder's advertising serving platform is projected to service over $500 million in media spend globally in 2009.
EyeWonder was advised on the transaction by Madison Alley Global Ventures.
The transaction is expected to close in the first half of 2010.
ICrossing seeking buyers, hires BofA-WSJ
ICrossing hired Bank of America roughly six weeks ago after it received an unsolicited bid from publisher Hearst Corp, one person told the Journal. The company's board decided Hearst's offer was too low and decided to court other potential buyers.
The Journal said iCrossing has held early talks with several possible acquirers including advertising firm WPP Plc (WPP.L), Japanese advertising agency Dentsu Inc (4324.T) and Aegis Media, an Aegis Group Plc unit (AEGS.L).
ICrossing is backed by Goldman Sachs Group (GS.N) and Oak Investment Partners.
iCrossing's public relations director Dana Mellecker told Reuters: "We've had a very strong year and we have a lot of options available to fuel the continued growth of the company."
ICrossing is seeking about $400 million from bidders but could remain independent if it can't attract the right price, several people told the Journal. Hearst's original offer was around $250 million.
http://www.reuters.com/article/idUSN3023388320091231
http://online.wsj.com/article/SB10001424052748704876804574628442026555388.html
But the next round of deal making is expected to have a different look. For decades, M&A activity in the marketing and ad industries has been dominated by global ad giants such as WPP, Publicis, Interpublic Group of Cos. and Omnicom.
Today, those ad conglomerates face growing competition from smaller, non-U.S. ad companies, such as Dentsu; private-equity firms like General Atlantic LLC and media companies, which are all trying to bolster their digital revenues.
Over the past few years magazine publishers, such as Condé Nast Publications and Meredith Corp., have bought small ad and technology firms, giving them the expertise to create digital promotions for advertisers. Earlier this month, Korea's largest ad company, Cheil Worldwide, bought Boston-based digital-ad firm Barbarian Group.
ICrossing, whose clients include Travelocity, Coca-Cola and Toyota Motor, has about 550 employees. It is led by Chief Executive Don Scales, the former CEO of Omnicom's Agency.com, and Chairman Richard Rosenblatt, former chairman of social-networking site MySpace.
Ad executives said Dentsu would be a logical fit for iCrossing.
The Tokyo-based company is trying to become less-dependent on its home market for revenue. It recently came up short in its efforts to buy Razorfish, Microsoft's digital-ad agency, which was snapped up by Publicis earlier this year for $530 million.
After dabbling in the U.S. ad market but failing to make its mark, Dentsu has become an aggressive suitor over the past year. President and CEO Tatsuyoshi Takashima has made no secret of the company's desire to find new acquisition targets. The company kicked off its M&A drive last year by buying McGarry Bowen, one of the largest independent ad boutiques in New York.
Other companies that have in the past expressed interest in iCrossing include General Atlantic, which owns AKQA, another big online ad firm, whose clients include Unilever, Microsoft's Xbox videogame console and McDonald's.
AKQA has long wanted to bulk up and eventually go public. A person familiar with General Atlantic said the company probably wouldn't participate in any bidding war for iCrossing.
The Journal said iCrossing has held early talks with several possible acquirers including advertising firm WPP Plc (WPP.L), Japanese advertising agency Dentsu Inc (4324.T) and Aegis Media, an Aegis Group Plc unit (AEGS.L).
ICrossing is backed by Goldman Sachs Group (GS.N) and Oak Investment Partners.
iCrossing's public relations director Dana Mellecker told Reuters: "We've had a very strong year and we have a lot of options available to fuel the continued growth of the company."
ICrossing is seeking about $400 million from bidders but could remain independent if it can't attract the right price, several people told the Journal. Hearst's original offer was around $250 million.
http://www.reuters.com/article/idUSN3023388320091231
http://online.wsj.com/article/SB10001424052748704876804574628442026555388.html
But the next round of deal making is expected to have a different look. For decades, M&A activity in the marketing and ad industries has been dominated by global ad giants such as WPP, Publicis, Interpublic Group of Cos. and Omnicom.
Today, those ad conglomerates face growing competition from smaller, non-U.S. ad companies, such as Dentsu; private-equity firms like General Atlantic LLC and media companies, which are all trying to bolster their digital revenues.
Over the past few years magazine publishers, such as Condé Nast Publications and Meredith Corp., have bought small ad and technology firms, giving them the expertise to create digital promotions for advertisers. Earlier this month, Korea's largest ad company, Cheil Worldwide, bought Boston-based digital-ad firm Barbarian Group.
ICrossing, whose clients include Travelocity, Coca-Cola and Toyota Motor, has about 550 employees. It is led by Chief Executive Don Scales, the former CEO of Omnicom's Agency.com, and Chairman Richard Rosenblatt, former chairman of social-networking site MySpace.
Ad executives said Dentsu would be a logical fit for iCrossing.
The Tokyo-based company is trying to become less-dependent on its home market for revenue. It recently came up short in its efforts to buy Razorfish, Microsoft's digital-ad agency, which was snapped up by Publicis earlier this year for $530 million.
After dabbling in the U.S. ad market but failing to make its mark, Dentsu has become an aggressive suitor over the past year. President and CEO Tatsuyoshi Takashima has made no secret of the company's desire to find new acquisition targets. The company kicked off its M&A drive last year by buying McGarry Bowen, one of the largest independent ad boutiques in New York.
Other companies that have in the past expressed interest in iCrossing include General Atlantic, which owns AKQA, another big online ad firm, whose clients include Unilever, Microsoft's Xbox videogame console and McDonald's.
AKQA has long wanted to bulk up and eventually go public. A person familiar with General Atlantic said the company probably wouldn't participate in any bidding war for iCrossing.
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