MessageMedia To Acquire Revnet Systems Inc.
Acquisition Supports MessageMedia's Industry Consolidation Strategy
BOULDER--(BUSINESS WIRE)--June 9, 1999--MessageMedia Inc. (Nasdaq:MESG - news), the leading provider of email-based customer relationship management and direct marketing services, announced it has signed a letter of intent to acquire Revnet Systems Inc. of Huntsville, Ala.
The deal is valued today at approximately $46 million in MessageMedia common stock. The parties are currently negotiating a definitive agreement, subject to all contingencies being satisfied. No other terms were announced. Assuming that the parties are able to reach a definitive agreement, the transaction is currently expected to close within 30 days.
Revnet (http://www.revnet.com), established in 1994, is a leading developer and supplier of advanced email marketing software and services. Its suite of database-enabled email list management products and services is used by hundreds of organizations in 35 countries worldwide for the high-speed delivery of targeted, personalized email.
''The Revnet acquisition further positions MessageMedia as an aggressive consolidator in the e-messaging services marketplace,'' said Larry Jones, MessageMedia president and chief executive officer. ''Revnet allows MessageMedia to expand its offerings into PC and software-based solutions, and brings us a rich set of new clients.''
Stuart Obermann, Revnet CEO, noted that, ''We are excited to be joining forces with MessageMedia. By combining our products and services, we are now positioned as the undisputed leader in the email messaging space. This acquisition benefits our customers because it provides the expanded resources necessary to ensure that our direct email marketing products and services remain best-in-class.''
About Revnet Systems
Revnet Systems specializes in direct email marketing software. Revnet's suite of products includes UnityMail for personalized, targeted marketing at the enterprise level, GroupMaster for easy-to-use, Web-enabled email lists, and MailKing for personalized email from a desktop PC. UnityMail is used by EDS, Mirage Resorts, Biztravel.com, Universal Studios, the Wall Street Journal, Staples, Ingram Micro, 3M and similar organizations for email communications.
Revnet's email outsourcing service, Revnet Express, provides remote access to the UnityMail backend and is used by over 175 companies, including CNBC, Sony Entertainment, BancBoston Robertson Stephens, NBC.com, Carnegie Hall, New Line Cinema, the New York Yankees and others. Revnet was established in 1994 by Chairman Jim Clayton, who previously founded Phoenix Microsystems and TxPORT.
Revnet is represented in this transaction by Legacy Capital Fund Inc. a New Orleans based investment banking firm.
About MessageMedia Inc.
MessageMedia (Nasdaq:MESG - news) is the leading provider of email-based customer relationship management and direct marketing services. The company offers a comprehensive suite of outsource messaging services for information delivery, e-commerce services, permission-based direct marketing and ongoing customer communications using industry standard Internet protocols.
MessageMedia's customer portfolio includes clients from the financial services, publishing, direct marketing, retailing and electronic commerce industries. Clients include E-TRADE, USA Today, GeoCities, Intuit, CMP Media, Barclays Bank and Bertelsmann.
SOFTBANK and its affiliates own approximately 49% of the outstanding common stock of MessageMedia Inc. Pequot Capital Management, a Connecticut-based research-intensive investment firm with more than $5 billion in assets under management, is also a major investor in MessageMedia.
''Safe Harbor'' Statement Under the Private Securities Litigation Reform Act. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties. These risk factors include, but are not limited to, the integration of a new senior management team, MessageMedia's limited operating history, the integration of recent acquisitions, risks associated with pending and future acquisitions, the anticipated fluctuations in operating results, the uncertain acceptance of new services being offered, and undeveloped and rapidly changing market and other factors detailed in MessageMedia's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1998 and its most recent Quarterly Report on Form 10-Q. All companies and product names are trademarks of their respective owners. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. MessageMedia undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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Contact:
MessageMedia Inc.
Beth Mayfield, 303/381-7500
investor@messagemedia.com
or
Edelman Public Relations Worldwide
Renee Schwager, 312/297-7430
renee_schwager@edelman.com
or
Revnet Systems Inc
Walter Thames, 256/519-4000, ext. 716
wthames@revnet.com
or
InterActive Agency
Alan Wallace, 310/664-6710, ext. 123
awall@iagency.com
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