America OnLine Inc, Vienna, Virginia bulletin board and on-line services operator, is to acquire privately-held manager of interactive content databases Redgate Communications Inc for 444,184 new shares, valuing the target at an indicated $35m. Redgate holders will end up with about 6.2% of the enlarged company. It sells media and interactive marketing services and manages multimedia content databases, reaching customers via CD-ROM, broadband systems and private satellite networks. The aim is to make America OnLine services more attractive by exploiting the CD-ROM titles held by Redgate, which presently do not have the reach that America OnLine’s network offers. America OnLine also said the merger will strengthen its franchise in interactive services such as advertis ing and transactional marketing, and will accelerate its move into multimedia services. Redgate, Vero Beach, Florida employs about 100 people and had $13m sales in 1993.
