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DoubleClick to acquire Performics

New York-based DoubleClick said it would pay $58 million in cash for search engine marketer Performics, plus additional payments of up to $7 million based on future earnings.

Performics helps clients automate and track the performance of paid placements in search listings on multiple search engines.

Performics clients include Time Warner Inc's (NYSE:TWX - news) Internet provider America Online, cellular phone maker Motorola (NYSE:MOT - news) and retailer Target Corp (NYSE:TGT - news) and expects to see revenues increase by 50 percent in 2004 from a year ago.

Once the acquisition closes, DoubleClick said it would combine Performics' search marketing technology with its DART system for tracking and analyzing online advertising including banner ads and more sophisticated rich media ads.

DoubleClick said it expected an additional $10 million in revenue over the second half of 2004, with search management revenue accounting for slightly less than half of that amount. Adding Performics' business would raise operating expenses and cost of revenue by nearly $9 million in the second half of this year.

DoubleClick said Performics would have 130 employees by the time the acquisition closed and that additional employees would be hired for that business by the end of the year. The acquisition is subject to approval by antitrust regulators.

DoubleClick shares traded 13 cents lower to $7.91 on the Nasdaq.

Source: Yahoo News

Posted by nakul at May 17, 2004 08:41 AM | TrackBack