United NewVentures, a unit of UAL Corp., has agreed to acquire Internet direct marketing concern MyPoints.com Inc. in a deal MyPoints valued at about $112.5 million in cash.
“This proposed acquisition will allow us to communicate our special offers, upgrades and fares more effectively with our existing customers and also reach out to an expanded audience of new customers,” Doug Hacker, United NewVentures’ president, said Monday in a prepared statement. “MyPoints.com’s strong direct-marketing capabilities and active user base make it a perfect complement to United’s commitment to better serve our customers.”
Under the terms of the deal, United NewVentures will pay $2.60 a sharefor all of MyPoints outstanding shares, a 64% premium to MyPoints’ (MYPT) Friday close of $1.59.
According to a MyPoints spokesman, the deal is worth $112.5 million based on the company’s 43.25 million shares outstanding.
The transaction is subject to customary conditions, including a valid tender of a majority of MyPoint’s common shares.
MyPoints will continue operations as a separate company headquartered in San Francisco, with its technology center remaining in Schaumburg, Ill.
The companies said the proposed acquisition allows United NewVentures and MyPoints to build new services for their combined customer base. Customers that are already active MyPoints Program members will now havemaccess to offers from United Airlines.
As a result of the deal, United Airlines and MyPoints have entered into a redemption agreement allowing MyPoints members to redeem points for travel awards on United Airlines.
Chicago-based UAL (UAL) created United NewVentures last October to boost its growing Internet activities. The unit focuses on United-branded e-commerce and wireless activities.
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