TheStreet.com Buys Corsis
Updated from 2:31 p.m. EDT
Expanding its reach into online advertising, TheStreet.com (TSCM), publisher of this Web site, announced today that it is purchasing interactive marketing services business Corsis, making TheStreet.com a "one-stop shop" for advertisers, marketers and content publishers for interactive advertising solutions.
The purchase includes Promotions.com, an online promotions agency that implements interactive promotions for some of the largest brands in the world.
"The acquisition of Corsis and Promotions.com will address our advertisers' demand for more integrated marketing campaigns that are being requested of all publishers," said Thomas Clarke, TheStreet.com CEO and chairman. "This acquisition will provide us with a robust technology platform, setting the foundation for the integration of future acquisitions, and we expect that it will allow us to expand our gross margins."TheStreet.com said it will pay $20.7 million in a mix of cash and stock for the firm, representing about two times historical revenue. It says the purchase will be immediately accretive to earnings. Clarke explained that interactive marketing services are growing faster and have higher margins than more traditional advertising. In addition, the acquired company would not depend on the growth of existing TheStreet.com businesses, but rather would be able to function as a standalone business, he said. The types of interactive service provided by Corsis are already being demanded by potential advertisers on TheStreet.com and its sister sites, RealMoney.com and Stockpickr.com, Clarke added. Corsis counts Kraft Foods and HSBC among its clients, as well as agencies like The Marketing Store. "With the resources, brand recognition and network of advertisers of TheStreet.com behind us, we believe we can capture this opportunity and expand our leadership in the space," said Gregg Alwine, co-president of Corsis.
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