ValueClick Inc. said Monday that it agreed to buy privately held companies Web Marketing Holdings Inc. and E-Babylon Inc. in cash and stock deals worth nearly $156 million.
The Westlake Village-based online advertising firm said it will acquire Web Marketing for about $141 million, including about $122 million in cash, 1.8 million ValueClick shares and 350,000 options to buy ValueClick stock. The transaction is expected to extinguish all Web Clients’ outstanding bank debt. Harrisburg, Penn.-based Web Marketing, also known as Web Clients, provides marketing services to help advertisers generate leads through an affiliate network of more than 1,500 Web sites and 30 million e-mail addresses. The company generated revenue of approximately $59 million in 2004.
ValueClick also agreed to purchase Simi Valley-based E-Babylon Inc., an online retailer of ink and toner products, for about $11.7 million cash and a $3 million payment for the company’s fulfillment center. E-Babylon will be integrated into ValueClick’s Hi-Speed Media business. In 2004, E-Babylon generated revenue of nearly $17 million.
Both transactions are expected to close in July. ValueClick said it plans to update its 2005 guidance once the acquisitions have closed.
