MindArrow Systems Inc., a provider of direct digital marketing software and services, today announced that it has signed a letter of intent to acquire privately held Radical Communication Inc. – or
what’s left of the once-leading rich media email company based in Southern California.
Radical Communication, which closed its doors in hopes of cutting operating costs and finding a buyer a
few months ago, once led the email software pack with an interactive platform that allowed customers to develop, distribute, and manage more effective rich media communications. The company's flagship
offering, RadicalMail, allowed for streaming audio and video, secure transactional capabilities and enhanced forwarding functionality.
MindArrow, which under the proposed terms of the
transaction, would acquire substantially all of the assets of Radical Communication in exchange for MindArrow stock and an unsecured subordinated promissory note from MindArrow in the amount of $1
million. The acquisition is expected to close by early fall 2001.
Both companies are optimistic about the deal.
"RadicalMail is one of the premier brands in the interactive marketing
space," said Robert Webber, president and CEO of MindArrow Systems. "This acquisition would expand our product suite and provide us with the opportunity to market complementary applications and
services. The combined solution will increase our ability to attract new clients and to better serve our joint customer base of more than 200 companies and over 20 channel partners, including several
leading advertising agencies and marketing services firms. We believe the consolidated company would be a leader in interactive rich media communications and that no other company currently provides
such a comprehensive suite of digital marketing applications and services."
"Combining the technologies and practices of two leading direct digital communications companies will speed
development and delivery of a comprehensive software suite," commented Bruce Stein, chairman and CEO of Radical Communication. "The new platform would extend our capabilities beyond email marketing
into a more comprehensive communication solution. We look forward to working together to grow our combined business."