Cyberplex Announces Acquisition of Incentaclick Media Group
3 December 2006
Cyberplex Inc. (TSX: CX), a North American technology and web solutions firm, is pleased to announce the acquisition of Incentaclick Media Group Inc. ("Incentaclick"), a firm specializing in on-line advertising and customer acquisition.
Incentaclick is a privately held business that specializes in digital marketing. The company uses its proprietary network technology to deliver customer leads and sales by connecting advertisers and web-based publishers. Based on a thorough understanding of on-line consumer behavior, search engine optimization, key word search and other online media, Incentaclick creates value on a pay for performance basis. The distinctiveness of this model, is that advertisers and merchants only incur marketing expenses when specific results are achieved. With a network of over 3,500 publishers and proprietary software that analyzes data to provide the most relevant, accurate and timely messages to its users, the Incentaclick network has shown continuous growth over the past 24 months. Incentaclick revenue, based on its last fiscal year ended March 31, 2006, was over $3.1 million and the business was profitable. According to Wikipedia, affiliate marketing is the single fastest growth industry on the internet. Incentaclick currently appears as the top naturally listed result on Google under the keywords "affiliate network".
Under the terms of the acquisition, Cyberplex will acquire all of the outstanding shares of Incentaclick for approximately $3.5 million in cash and Cyberplex shares. In addition, the shareholders of Incentaclick may receive additional consideration based on an earn-out arrangement over the next 24 months with predetermined financial targets, which include among other things, a requirement for positive EBITDA.
"The acquisition of Incentaclick is one of our largest acquisitions to date and is a very exciting development for our company," said Geoffrey Rotstein, chief executive officer of Cyberplex. "Not only does this new division provide an additional service that we can provide to our clients, but with a revenue model based on on-line advertising, it will allow us to leverage one of the largest growth areas of the internet."
All three principal shareholders of Incentaclick will remain with the company and its current President, Rafael Alter, will be appointed to the Cyberplex board of directors at the next board meeting, subject to all necessary approvals.
"We are thrilled to be joining forces with Cyberplex," said Rafael Alter, president of Incentaclick. "The opportunity to work closely and leverage the skills and experience of Cyberplex as we continue to aggressively grow our business is very exciting for the entire Incentaclick team."
Further details of the transaction can be found in filings of Cyberplex at www.sedar.com.
About Cyberplex
Cyberplex Inc. (www.cyberplex.com) is a technology firm focused on providing application expertise and web based solutions to it clients. The Company's specialized team of technology consultants and design, usability and solution specialists assist clients with all aspects of their web based applications as they design, develop and promote solutions that improve business.
About Incentaclick
Incentaclick Media Group Inc. (www.incentaclick.com) is a performance based marketing agency that focuses on customer acquisition and lead generation. Our affiliate network includes various media properties and distribution channels that will enable clients to target the right audience ensuring a scalable ROI.
This news release may contain certain forward-looking statements that reflect the current views and/or expectations of Cyberplex Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
For further information: investor@cyberplex.com
Source: newswire
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