CMGI to Reabsorb Engage
CMGI will reacquire the remaining outstanding shares of struggling marketing and content management software developer Engage, effectively reabsorbing the company it took public three years ago.CMGI Inc. announced plans Tuesday to reacquire the remaining outstanding shares of struggling marketing and content management software developer Engage Inc., effectively reabsorbing the company it took public three years ago. CMGI launched Engage as an online advertising network in 1998, then took the company public a year later, though it remained a majority investor in Engage and now owns 75 percent of the company. Under terms of the proposed deal, CMGI would exchange 0.2286 of a share of CMGI common stock for each outstanding share of Engage stock. The offer represents a value of $0.24 per share of Engage common stock, making the deal worth about $11.8 million. In early 2000, Engage stock had traded close to $100 a share.
CMGI, a pioneer of online marketing and advertising, had consolidated its other online advertising startups Flycast Communications Corp. and Adsmart Corp. into Engage. Engage or CMGI also acquired Virtual Billboard Network, MediaBridge Technologies Inc., AdKnowledge Inc. and Internet Profiles (I/PRO) Corp., all of which Engage absorbed.