California agencies USWeb, Santa Clara, and CKS Group, Cupertino, finalized the merger of the two companies after approval by stockholders of both.The new company will do business under the name USWeb/CKS, trading under stock symbol USWB. The agency had originally planned to call the new company Reinvent Communications, but ran into an existing legal claim on that name. Under the deal, valued at $540 million, USWeb is exchanging 1.5 shares of USWeb stock for each share of CKS stock. The merger and integration costs are expected to total about $34 million. USWeb/CKS will also take a fourth-quarter charge of $11 million as a write-off from a previous CKS acquisition. Mark Kvamme, chairman-CEO of CKS, will be chairman of the combined company; Robert Shaw, CEO of USWeb, retains the same title.
Copyright December 1998, Crain Communications Inc.