Cross Media Marketing Corp. will pay more in cash–and in less in stock– to acquire LifeMinders, Inc.
New York-based Cross Media, which markets magazine subscriptions and memberships by phone, has increased the total cash available for LifeMinders’ stockholders from $12.1 million to $24 million.
In addition, it has increased the stock exchange ratio from roughly 1.23 to 1.29 shares of Cross Media common stock for each share of LifeMinders stock.
The two firms announced on July 27 that Cross Media would acquire LifeMinders for $68.1 million in cash and stock. The merger will give Cross Media access to LifeMinders’ 20 million-name database, and to its technology.
LifeMinders’ stockholders will have a choice of receiving all cash, all stock or a mix of cash and stock. Initially, the deal called for these cash payments to be reduced if the total went over $12.1 million.
“These new terms create for LifeMinders stockholders and opportunity for significantly more liquidity,” said Jonathan Bulkeley, CEO of LifeMinders, in a statement. “To date, LifeMinders stockholders have already executed voting agreements in support of the merger as to approximately 25% of LifeMinders’ outstanding shares.”
The merger is expected to close in the fourth quarter of 2001.
The cash payout for the purchase will be reduced by up to $1.7 million if LifeMinders’ net cash is less than $49 million on Aug. 31.
In an interview late last year, Bulkeley described LifeMinders as a permission-based deliverer of custom content.
“You give them your e-mail address and tell them your interests, and they send you e-mails with customized advertising–just for you,” he said. “It’s gifts, it’s stuff about young children, it’s astrology, it’s weather. It’s like customizing a newspaper or Yahoo, but instead of having to go there, it gets pushed to you.”
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