• by Paul Gough , October 29, 2003

Less than a month after it announced a $58 million purchase of affiliate marketer Commission Junction, ValueClick is hinting it isn't done with acquisitions.

In a conference call with analysts Tuesday afternoon, chairman and chief executive officer James R. Zarley didn't disclose any specific targets but he indicated ValueClick would continue to consolidate the affiliate marketing business.

ValueClick has made no secret of the fact that it was in the market for merger and acquisition opportunities. It's shopping with a $223 million cash reserve for what it calls the "right acquisitions." Zarley said ValueClick's management was getting stronger all the time and it had the depth to take advantage of changes in the interactive space.

"It is still just the beginning," Zarley said. "There will be more consolidation in our industry, and we intend to be part of it."

The online marketing firm, which was founded in April 1998, has grown several times in the past five years. Mediaplex/AdWare was acquired in October 2001, with affiliate marketer Be Free coming on board a little more than eight months later. Search123, an online search-marketing firm was acquired in May. The deal to buy Commission Junction, another affiliate marketer, was announced Oct. 10. The purchase of affiliate marketing will create a separate division within ValueClick beginning next year, Zarley said.

ValueClick reported $22.7 in revenues in the third quarter, about $1 million more than it had anticipated and more than 31 percent compared to a year ago.

Organic revenue, favored by analysts because it doesn't include revenues from acquisitions, increased 40 percent compared to the third quarter of 2002. Zarley said the company's efforts in media, search and technology position it well to take advantage of the expected upturn in online advertising spending. ValueClick expects about $87 million in revenues for the full year ended Dec. 31, said.