Marketing Services Group Inc., New York, has signed a binding agreement with CMGI Inc., to acquire CMG Direct Corp. The Marketing Services Group will also acquire the business unit PermissionPlus, a Web application, as part of the deal.
As a result of the transaction, CMGI, will become a significant minority stockholder in MSGI. The CMGI businesses will continue to operate out of their Boston offices.
Additional terms of the agreement were not disclosed. The transaction is expected to be complete by May 15.
CMG Direct is a database provider to direct marketers. PermissionPlus is a Web application that enables companies “to automate Web site customer acquisition and increase customer lifetime value,” according to a statement.
The acquisition occurs concurrently with the formation of MSGI’s new Internet Group. Ed Mullen, president and CEO of CMG Direct, will become CEO of the group, which will combine MSGI’s Pegasus Internet division and PermissionPlus.
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