Agency.com Ltd, the internet services company behind the online marketing efforts of British Airways, Compaq and Sprint, said it has struck a cash-and-stock deal valued at around $15m to acquire online marketing rival, i-traffic Inc.
Details of the transaction emerged from Agency.com’s initial public offering prospectus lodged with the US Securities and Exchanges Commission. The New York-based company plans to float on the Nasdaq stock exchange later this month with an issue of 5.9 million shares of common stock priced between $10 and $12 each. The price it pays for I-traffic, which will include a $3m cash payment, will depend on the pricing of the shares, the IPO prospectus said.
Agency.com reported a $411,000 net loss for the first six months of 1999 on revenue of $30.4m. The company said it would use the IPO proceeds to repay debt, expand operations and make strategic investments or acquisitions. A spokesperson for Agency.com told ComputerWire that it expects to close the deal next month.
