• by Masha Geller , May 1, 2002

Two days after announcing that its operations have broken even in Europe and that overall break-even is expected in the fourth quarter of this year, 24/7 Real Media has more good news.

According to an announcement made earlier today, they’ve sold a majority stake in their US-based 24/7 Mail business to Naviant, Inc., one of the leading collectors of opt-in consumer data and an arguable industry leader in permission-based email marketing. The new entity - officially signed into existence late this morning - will be called 24/7 Mail, Inc.

Under the terms of the agreement, the purchase price of the majority stake is up to $4.0 million, with $1 million paid in cash at closing, $1 million payable in installments over the next nine months, and up to $2 million payable quarterly over three years contingent on future gross profit. Naviant also has an option to acquire 24/7 Real Media’s remaining minority stake in the business.

“We are delighted to complete this sale in a manner that enables us to focus on our core businesses while still participating in the future success of this division,” said David J. Moore, Chairman and CEO of 24/7 Real Media, in a press release.

Just as importantly, he added, “the cash proceeds raised from this transaction solidify management’s confidence that 24/7 Real Media will have the resources necessary to execute its business plan and reach break-even in Q4.”

Naviant, which also owns eDirect, SweepsClub.com and Data One Marketing, will now have more than 3,000 clients and manage more than 100 million fully permission-based email address files and more than 38 million U.S. Postal Service files.

Both companies are hesitating to call the new venture a sale, instead terming the deal a partnership. Under terms of the agreement, 24/7 Real Media and Naviant will cooperate closely to optimize the business for the benefit of its list owner clients and advertisers. Substantially all current employees of 24/7 Mail will remain with the new venture and will continue to operate for the immediate future out of 24/7 Real Media’s New York headquarters. Naviant’s sales team and 24/7 Real Media’s entire sales force will market the email lists, as well the properties currently managed by Naviant and its affiliates. Naviant will also become 24/7 Real Media’s preferred email marketing partner.