ValueClick to Acquire FastClick
ValueClick
(VCLK)
agreed to acquire
FastClick
(FSTC)
TheStreet Recommends
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.
