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ValueClick to Acquire FastClick

The $214 million deal will give it the biggest online advertising network.
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for about $214 million, beefing up its online advertising presence.

ValueClick will exchange 0.7928 of a share for each of FastClick's roughly 20 million shares outstanding. The price comes out to about $10.11 a share in ValueClick stock, roughly 14% above FastClick's Wednesday close of $8.85 a share.

Westlake Village, Calif.-based ValueClick said the acquisition will give it the largest online advertising network. The company expects to generate $4 million of annual cost savings from the transaction, making it accretive to earnings before interest, taxes, depreciation and amortization.

ValueClick noted that FastClick has about $81 million of cash and marketable securities on its balance sheet, giving the transaction a total value of $133 million net of that total. The boards of both companies have approved the deal, and it remains subject to the approval of two-thirds of FastClick's outstanding shares.

The tax-free acquisition is expected to close in the fourth quarter of 2005.