UPDATE: Hellman & Friedman will lead the acquisition. The news follows rumors a sale was imminent.
Less than a week after rumors circulated about an imminent sale, DoubleClick has agreed to be acquired by a pair of companies led by equity firm Hellman & Friedman, in San Francisco.
DoubleClick shareholders will receive an aggregate $1.1 billion in the deal, or $8.50 per share. Hellman's investment partner in the DoubleClick purchase is JMI Equity in San Diego. The two have teamed up on other software investments, including Blackbaud.
DoubleClick chief executive Kevin Ryan will step down, and the company's board will be exchanged, after the deal closes. During a conference call discussing the sale, Ryan said David Rosenblatt will become CEO of the TechSolutions division, and Brian Rainey will be CEO of the DataSolutions division.
Ryan said the company had been in talks and negotiations with dozens of companies, including equity firms and competitors.
"DoubleClick has two outstanding franchises with strong presence in their marketplaces. They have powerful brand names, experienced management, and dedicated and skilled employees," said Philip Hammarskjold, managing director of Hellman & Friedman.
Closing is subject to stockholder approval and debt financing arrangements.
Investment banker Lazard Freres & Company represented DoubleClick in its quest for a buyer, underway since last November. The company partly blamed costs incurred during that search for its poor first quarter results, which amounted to a loss of $0.01 per share. Executives said staffers were also paid to stay on despite the uncertainty.
Hellman & Friedman has invested in 50 companies over approximately twenty years. They include agencies Digitas and Young & Rubicam. Executive remarks today suggested the company would run DoubleClick as a business, but the dual-CEO status conferred on Rosenblatt and Rainey raised the possibility the company might be split in two.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
September 17, 2014
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT