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Digital Impact, Inc. (NASDAQ: DIGI), a leading provider of integrated digital marketing solutions for Global 2000 enterprises, today announced that it has signed a definitive agreement to acquire Marketleap, a San Francisco-based Internet marketing firm specializing in search engine marketing services...
"We are extremely pleased to be joining forces with Digital Impact," said Noel McMichael, President and co-founder of Marketleap. "We know our clients are eager to expand their use of email to retain and grow their online customer relationships. We are equally eager to offer our acquisition tools and services to Digital Impact's blue chip base of clients, many of whom are expected to expand their search strategies this year."
Anyhow, congrats to whomever owns marketleap. Few million ain't bad. Get a nice ferrari and such.
Unless of course there was strong reason for them to believe that business was not going to continue at or near the same pace. Conservatively speakiung a business doing 1 mill. per year will sell for 4-5 million.
The big reason for the deal is the synergy between search and email. When done properly, you can drive some seriously kick-ass results for clients. This deal should be looked at more as a merger/tradeup, and not a sell-out/retirement plan for the founders. We all know this space is taking off like gangbusters and that major consolidation is underway. The question you will have to ask yourself is, "can I hold out for premium $$, or should I pick the right strategic partner before all the good ones are gone?" Timing is everything. The multiples of dot-com days may be history, but one thing is for sure, Web Time (or Moore's Law) is still very much in effect.
Anyway, I want to thank all the guys in this forum for your comments. I really had a great time at the last PubCon. I can't wait for Vegas!
See you at the finish line.
PS> I'm sure Brett will go for way more than 5x when he's ready! :) See you in Margaritaville, Brett.