Electronic software distribution company Digital River Inc said Friday that it has acquired two e-commerce providers, Maagnum Internet Group and Public Software Library Ltd. Minneapolis-based Digital River says the deals increase its client base to include an additional 2,500 clients who are publishers of shareware, a new market for the company. Both of the acquired companies have shareware transaction processing capabilities that offer an enabling technology for consumers to purchase software after a free download.
The two deals have already closed. The purchase price for Maagnum was $2.5m in cash and 116,650 shares of Digital River common stock, valued at roughly $5.2m at the time of closing. In addition, the principals of Maagnum have the chance to receive up to 512,000 additional shares based on performance over the next two years. PSL, meanwhile, cost the company 161,842 shares, valued at $6.5m at closing. Maagnum and PSL had combined revenues of about $7m in 1998.
