DoubleClick Inc. to acquire NetCreations

Weekly Corporate Growth Report, Oct 16, 2000

The Deal: DoubleClick Inc has agreed to purchase NetCreations Inc. for $191 million. NetCreations shareholders will receive 0.41 share of DoubleClick common stock for each outstanding share of NetCreations common stock. The deal represents the latest in DoubleClick's frenzy of acquisitions.

Discussion: NetCreations Inc. is a direct marketing firm that uses an opt-in system to compile e-mail lists, ensuring that only interested parties receive its ads. Its PostMaster Direct service offers a collection of 12 million names organized into some 3,000 interest areas. The firm has provided its e-mail lists to more than 2,000 clients including Dell, J. Crew and Ziff-Davis. NetCreations has agreements with about 350 Web site operator to sign up users who wish to receive e-mail ads.

DoubleClick Inc. provides targeted ad serving to more than 1,500 Web sites using its proprietary DART technology. DART collects and analyzes audience behavior and predicts which ads will be most effective, measures ad effectiveness and provides data for Web publishers and advertisers. The company also licenses its technology to third-party publishers and ad agencies. In addition, the firm sells ad space across its network of sites, including AltaVista, Travelocity and Egghead.com.