InfoUSA makes bid to acquire Digital Impact

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Omaha, Neb.—InfoUSA Thursday announced a bid to acquire Digital Impact, an e-mail marketing services provider, for $2 per share in cash, a 38% premium over Digital Impact’s Thursday closing price of $1.45 a share. The deal is valued at about $81 million.

San Mateo, Calif.-based Digital Impact late Thursday confirmed receipt of infoUSA’s offer. "The Digital Impact board of directors will be reviewing the letter in accordance with their fiduciary obligations," the company said in a statement.

"This company is like a one-trick pony," Vinod "Vin" Gupta, chairman-CEO of infoUSA, said of Digital Impact. "In today’s marketplace they cannot survive."

Gupta said e-mail companies without a multichannel strategy involving e-mail, postal mail and telemarketing are in trouble. "There’s a very bleak future for companies like them to be independent."

InfoUSA has been on an acquisition tear. On the heels of several acquisitions last year, it announced Feb. 1 that it had bought @Once, an e-mail technology company.

InfoUSA said it planned to integrate @Once’s operations with YesMail, its San Carlos, Calif.-based e-mail subsidiary.

In that announcement, Gupta said he planned to acquire more e-mail marketing companies to "further grow our e-mail division and to promote cross-selling opportunities within our entire Donnelley Group," in order to give customers a one-stop shop for marketing services.

—Carol Krol

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