Interactive entertainment network eUniverse, Inc., and online media and direct marketing company L90, Inc. today entered into an Agreement and Plan of Merger. Under the terms of the agreement,
unanimously approved by both Boards of Directors, L90, Inc. will be acquired by eUniverse through a wholly owned subsidiary of eUniverse in a cash merger worth between $49.82 million and $54.80
million.
Brad Greenspan, chairman and CEO of eUniverse, estimated that the acquisition will add more than $2 million to his company’s net income in the first 12 months after closing.
L90's CEO
John Bohan said that L90 will continue to service its publishing and advertising clients as a distinct brand under the eUniverse umbrella. “Given that the two companies have similar cultures that
value innovation and hard work, we believe that the integration process will be very smooth.”
eUniverse, through L90, expects to offer its growing suite of proprietary Web products and services,
such as Cupid Junction and Fitness Heaven, to more than 100 sites in the L90 network. eUniverse also plans to introduce its performance advertising and direct marketing based technology and tools to
L90
The addition of L90Direct, L90's offline direct marketing and list management division, also adds a new distribution channel for eUniverse's email network. L90Direct will allow eUniverse to
introduce its email newsletters and online database services to the many direct marketers and advertisers that work with L90Direct.
The merger is subject to L90 shareholder approval and other
customary closing conditions and is expected to close within approximately 90 days. Upon completion of the merger, L90 will no longer be publicly traded.