NEW YORK J.L. Halsey said it has agreed to buy e-mail marketing service provider EmailLabs in a deal worth up to $26.5 million.
The acquisition is the second e-mail service provider acquired in five months by the Delaware-based holding company, which aims to buy its way into a leading position in the e-mail marketing space. In May, J.L. Halsey agreed to buy Lyris, a Berkeley, Calif.-based e-mail service provider in a $29.5 million deal.
"We find the e-mail marketing space interesting from many different angles," said Luis Rivera, COO of J.L. Halsey. If you look at Google as far as pure ROI goes, many studies have shown e-mail to be more effective."
In addition to Lyris and EmailLabs, Bigfoot Interactive, another e-mail service provider, was bought for $120 million last month by Alliance Data Systems' Epsilon subsidiary.
The EmailLabs acquisition agreement calls for the owners of EmailLabs parent Uptilt to receive $19.5 million in cash and a further $7 million based on performance targets. EmailLabs co-founders CEO David Sousa and CTO Adrian Lang will leave the company. Both will serve as advisors.
EmailLabs provides an e-mail marketing hosting service that allows agencies and marketers to manage e-mail communications with customers and prospects. Rivera said it would continue to operate separately from Lyris, a software-based e-mail platform.
Through Sept. 30, EmailLabs had $6.4 million in revenue, the company stated.