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CMGI reels in Flycast
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September 30, 1999: 3:48 p.m. ET
Shares of Web advertising company take off after acquisition news
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NEW YORK (CNNfn) - Flycast Communications, a San Francisco-based online advertising company, agreed Thursday to be acquired by Internet venture capital company CMGI Inc. in a stock swap worth about $690 million.
The deal calls for CMGI to exchange 0.4738 CMGI shares for each Flycast share. Based on CMGI's closing price of 100-5/16 on Wednesday, the deal values each Flycast share at $47.53.
Shares of San Francisco-based Flycast (FCST) rose about 7-1/2 to 45-1/2 in early afternoon trading, while CMGI rose 1-15/16 to 102-1/4.
The companies also agreed to a stock option deal. Andover, Mass.-based CMGI can buy up to 19.9 percent of Flycast's outstanding common stock if the deal doesn't go through.
CMGI said Flycast, which helps clients plan online ad campaigns and sells ad space on a network of about 800 small and medium-size Web sites, will be included in its stable of online marketing and advertising companies.
CMGI has made several acquisitions recently, including a deal for AdForce Inc. (ADFC) for $500 million in stock that was announced Sept. 20.
On Wednesday, Flycast said it expects to report total revenue of between $11 and $12 million, which represents more than 70 percent growth from revenue of $6.4 million recorded in the second quarter, and is more than 70 percent higher than consensus estimates.
-- from staff and wire reports
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CMGI
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