NEW YORK DoubleClick said it has agreed to be acquired by Hellman & Friedman, a private equity firm, for $1.1 billion.
Under terms of the agreement, H&F in San Francisco, with additional investment from venture capital firm JIM Equity, would pay $8.50 in cash for each DoubleClick share. CEO Kevin Ryan plans to leave the company after the deal closes. David Rosenblatt, DoubleClick's president, will remain with the company as CEO of the TechSolutions division. Brian Rainey, president and general manager of data solutions, is set to be CEO of DataSolutions division. A new chairman and board of directors will be named after closing, the company said.
The deal is expected to close in the third quarter. DoubleClick is the leading provider of online ad serving technology, along with other business lines in e-mail and database management.
"We look forward to partnering with the DoubleClick team to help realize the company's significant opportunities for growth in both its online advertising and marketing and data businesses," said Phillip Hammarskjold, managing director of H&F, in a statement.
DoubleClick has been synonymous with online advertising since its inception a decade ago. After meteoric growth during the dot-com boom, DoubleClick faced lean times during the subsequent collapse. At the time, Ryan and DoubleClick management decided to forgo its media business to concentrate on being a technology provider.
DoubleClick has seen fierce low-cost competition in its core business, ad serving, resulting in the New York-based company not benefiting from the surging online ad market. Last week, DoubleClick reported a $917,000 loss in the first quarter on revenue of $76.3 million.