BOSTON Digitas stock closed Thursday on the Nasdaq at $8.05, down $1.78 or 18 percent, following news earlier in the day that it plans to buy Modem Media in a stock-for-stock transaction valued at $200 million [Adweek Online, July 15].
Earlier in the day, the Boston-based digital- and direct-marketing shop's shares (DTAS) fell to $7.35.
Modem Media's stock (MMPT), meanwhile, rose $1.12 or 26 percent to close on the Nasdaq at $5.42. Modem is based in Norwalk, Conn.
The Modem Media acquisition, due to close in the fourth quarter, will bring 270 staffers and clients like Home Depot and Heineken to 1,200-employee Digitas, which has accounts like AT&T and American Express.