Acquisitive internet services company, US Interactive Inc has bought yet another company, Los Angeles-based Digital Evolution Inc on undisclosed terms. The purchase was expected and was first rumored back in April (CI No 3,402). At that time Digital Evolution wouldn’t confirm or deny the story, but now it has joined the US Interactive family and the combined entity is expected to have revenues of about $20m this year. Digital Evolution is about the same size as US Interactive, and the new entity will have about 200 employees, with all Digital Evolution’s employees staying on. US Interactive, which is headquartered in Philadelphia, but likes to think of itself as a New York based Silicon Alley firm where it also has offices, says it was attracted to Digital Evolution by its technology and software development skills. The company started life as a software developer and recently produced the Virtual Springfield Simpson’s game for Fox Television, part of News International Corp. US Interactive’s core skills are in marketing and services. US Interactive’s chief executive, Larry Smith, will hold the same position at the enlarged company; Digital Evolution’s CEO Eric Puller become executive chairman and will work out of the LA office, while Rich Masterson, retains his president and COO role at US Interactive in Philadelphia.
