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DoubleClick Inc. on Monday said it has agreed to be acquired by private equity firm Hellman and Friedman LLC for $1.1 billion in cash, a move that would make the online ads placement company a private firm.
Under terms of the agreement, the San Francisco-based private equity firm would pay DoubleClick shareholders $8.50 for each share of common stock. The deal, which is expected to be completed in the third quarter, represents a 10.6 percent premium over the average closing price of DoubleClick stock for the last 30 days.
DoubleClick, based in New York, places online advertising for companies, and also provides tools for companies to analyze the performance and effectiveness of marketing programs.
"This transaction provides great value to our stockholders and underscores the strength of our industry leading position and DoubleClick's business model," Kevin Ryan, chief executive of DoubleClick, said in a statement.
Following the sale, Ryan is expected to step down as chief executive to "pursue other opportunities," the companies said. David Rosenblatt, president of DoubleClick, will oversee the company's TechSolutions division as its chief executive, while Brian Rainey, president and general manager of DoubleClick, will hold the same position at the company's DataSolutions division. A new board of directors and chairman would be appointed after closing.
The acquisition, which has been approved by DoubleClick's board, requires approval by the company's shareholders.
JMI Equity, a San Diego-based venture capital firm, is expected to also invest in the deal. JMI, which invests only in software and business service industries, has joined Hellman and Friedman in other deals, including investments in Blackbaud Inc., Mitchell International Inc., and Vertafore Inc., Hellman and Friedman said.