WPP agrees to acquire 24/7 Real Media for $11.75 per share

17 May, 2007 WPP (NYSE:WPP) has agreed to acquire 24/7 Real Media (NASDAQ:TFSM), a leading global digital marketing company quoted on NASDAQ, for $11.75 per share valuing 24/7 Real Media at $649 million

Reported revenues for 24/7 Real Media for the 12 months ended 31 December 2006 were $200 million, up 43% on prior year

The management team of 24/7 Real Media will develop the business within WPP and rollover unvested equity interests

Acquisition will strengthen WPP’s position in the rapidly-growing digital marketing industry enhancing the Group’s position in search marketing, digital media and adding strong technology skills

24/7 Real Media is headquartered in New York and operates in 12 countries throughout North America, Europe and Asia-Pacific

WPP Group plc ("WPP" or the "Group") has entered into a definitive agreement to acquire the entire share capital of 24/7 Real Media Inc. ("TFSM") for $11.75 per share by way of an all cash tender offer.

The acquisition values 24/7 Real Media at approximately US$649 million, equivalent to approximately 3% of WPP’s market capitalisation on 16 May 2007.

The cash consideration payable to TFSM share owners will be US$637 million and will be financed in cash from existing resources and debt facilities. Unvested stock and options are valued at US$49 million and net cash is expected to be approximately US$37 million at closing, to value TFSM at US$649 million.

Source : Equity Bulls

Keywords