InfoUSA Offers $71 Mil. for Digital Impact

NEW YORK InfoUSA said it has offered nearly $71 million to buy interactive marketing services agency Digital Impact in a cash deal.

InfoUSA, an Omaha, Neb.-based database company, said it sent a letter to Digital Impact’s board of directors offering to pay $2 in cash for each of Digital Impact’s 35.3 million outstanding shares. The price is a 38 percent premium over Digital Impact’s Feb. 10 closing price.

Digital Impact said its board of directors is considering the offer.

The deal would bring to InfoUSA offerings in e-mail and search marketing. San Mateo, Calif.-based Digital Impact made its name as an e-mail service provider. In the past nine months, the company has tried to transform itself into a marketing services agency. It bought search-marketing provider Marketleap in July 2004 for $3.8 million. InfoUSA owns e-mail service provider Yesmail, which it bought in February 2003.

“I firmly believe that the critical mass that would be created by such a combination is necessary to generate respectable operating margins in a very fragmented industry,” InfoUSA chairman and CEO Vin Gupta said in a statement.