DoubleClick Sale Confirmed

  |  April 25, 2005   |  Comments

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.

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Zachary Rodgers

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. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Jobs