ValueClick Europe Expands Further into Online Shopping Destination Sites
ValueClick, Inc. (Nasdaq: VCLK) today announced that it has acquired Shopping.net, a privately-held company based in London, for approximately $13.3 million in cash, net of cash acquired. Shopping.net owns and operates 27 websites that provide comparison shopping, search, and vertical market content to European online consumers.
Shopping.net will be integrated into ValueClick Europe to complement ValueClick Europe’s existing online marketing services. Shopping.net websites – including shopping.net, classifieds.co.uk and mortgages.net – enable online transactions and attract more than two million unique visitors per month. Shopping.net generates revenue primarily through online advertising priced on a cost-per-click basis. Shopping.net is ValueClick’s second European acquisition of online shopping destination sites, following the 2004 acquisition of comparison shopping site, PriceRunner.com.
“Shopping.net is a great fit for ValueClick Europe,” said Carl White, chief executive officer of ValueClick Europe. “This acquisition expands our online shopping destination site presence in the marketplace, and is another significant step in our European expansion. Shopping.net will complement our other businesses, including PriceRunner, Commission Junction and vcmedia.”
“Europe is an important growth area for ValueClick, and we’re excited to add Shopping.net to our European operations,” said James Zarley, chairman and chief executive officer of ValueClick. “Shopping.net gives Carl’s team greater opportunities to leverage their expertise in monetizing online traffic and expands ValueClick’s overall presence in Europe.”
Under the terms of the agreement, ValueClick has acquired all outstanding equity interests in Shopping.net for approximately $13.3 million in cash, net of cash acquired. For calendar year 2006, Shopping.net is expected to generate approximately $4 million in revenue and $2 million in adjusted-EBITDA (1). Shopping.net’s contribution to ValueClick’s financial results for the quarter ending December 31, 2006 is anticipated to be immaterial.
(1) Adjusted-EBITDA is defined as GAAP (Generally Accepted Accounting Principles) net income before interest, income taxes, depreciation, amortization, and stock-based compensation. Adjusted-EBITDA included in this press release is a non-GAAP measure.
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ValueClick Inc. (Nasdaq: VCLK) is one of the world’s largest integrated online marketing companies. Through its individual brands, ValueClick offers comprehensive and scalable solutions that deliver cost-effective customer acquisition for advertisers and revenue for publishers. ValueClick provides advertisers and publishers with performance-based solutions through all online marketing channels. Brand offerings include:
+ vcmedia - online advertising network and ad sales for advertisers and publishers
+ Commission Junction - affiliate marketing
+ PriceRunner.co.uk – the UK’s most comprehensive and impartial price comparison website
+ Mediaplex - intelligent technology for digital marketing, including adserving, email marketing and paid search bid management.
For more information, please visit www.valueclick.co.uk.
Shopping.net is a privately owned company based in the UK who own the world's leading portfolio of Shopping related domain names and who operate shopping web sites around the globe. See http://www.shopping.net/aboutus.htm for more information.
This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, ValueClick’s ability to successfully integrate its Fastclick and Webclients acquisitions, trends in online advertising spending and estimates of future online performance-based advertising. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under “Risk Factors” and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including, but not limited to: its Annual Report on Form 10-K filed on March 31, 2006 and an amendment to its Annual Report on Form 10-K/A filed on April 21, 2006; its current report on Form 8-K filed on February 27, 2006; recent quarterly reports on Form 10-Q and Form 10-Q/A; other current reports on Form 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the risk that market demand for online advertising, and performance-based online advertising in particular, will not grow as rapidly as predicted. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Published on: 12:00AM on 4th December 2006