DoubleClick, Inc. to acquire NetGravity, Inc. for 56.0 times revenue

Weekly Corporate Growth Report, Nov 8, 1999

The Deal: DoubleClick, Inc. has announced that it has completed its merger with NetGravity, Inc. Under the terms of the agreement, holders of NetGravity stock will receive 0.28 shares of DoubleClick common stock for each share of NetGravity common stock. The transaction is valued at $650 million, based on DoubleClick's closing price of $128.9375 on October 25, 1999. The combined market capitalization of the two companies is $5.8 billion.

Discussion: DoubleClick, Inc. is a leading provider of comprehensive global Internet advertising solutions for marketers and Web publishers. The online advertising firm offers targeted ad delivery using its patented DART technology, a dynamic analysis tool that collects information on audience behavior and uses that data to target ad placement. DART also measures Web traffic and ad effectiveness and provides that data to both Web publishers and advertisers. DoubleClick delivers ads to more than 1,300 sites in its network, including AltaVista and U.S. News Online. Advertisers include AT&T and IBM.

NetGravity, Inc. is the leading provider of software for managing online advertising and direct marketing. Its AdServer software automates ad inventory management, scheduling, reporting and analysis. Companies that use NetGravity's software include merchants E*TRADE and Ticketmaster and online publishers Associated Press, MTV Interactive and USA Today. The NetGravity business will be included in the DoubleClick Technology Solutions division of DoubleClick, Inc.