CMGI To Become a Significant Minority Stockholder in MSGI
MSGI forms Internet unit through the strategic acquisition of
CMG Direct and PermissionPlus(tm)
NEW YORK--(BUSINESS WIRE)--March 10, 1999-- Marketing Services Group,
Inc. (NASDAQ: MSGI - news), an integrated marketing and Internet services
industry leader, today announced the signing of a binding agreement with
CMGI, Inc. (NASDAQ: CMGI - news) to acquire its wholly-owned subsidiary,
CMG Direct Corporation, including its business unit known as PermissionPlus.
The transaction is targeted to close on or before May 15, 1999. As a result of
this transaction, CMGI will become a significant minority stockholder in MSGI.
The agreement is subject to customary closing conditions. Additional terms of
the agreement were not disclosed.
CMG Direct is the original CMGI direct marketing business. Their latest
Internet incubation is PermissionPlus, an automated Internet Marketing
solution. The businesses will continue to operate out of their Boston area
facility. This acquisition also launches the formation of MSGI's new Internet
Group.
Ed Mullen, President and CEO of CMG Direct, will become CEO of the MSGI
Internet Group. The new entity will combine MSGI's Pegasus Internet division
and PermissionPlus. ''We are delighted to inaugurate MSGI's Internet Group
with the acquisition of such a prestigious company as CMG Direct, and to
have such a great leader and visionary as Ed Mullen to take us to the next
level,'' said Jeremy Barbara, Chairman and CEO of MSGI. ''We believe
PermissionPlus will continue to lead the industry in Internet marketing
automation.''
PermissionPlus, a Web application, enables companies to automate Web site
customer acquisition and increase customer lifetime value. It combines the
power of a market research company, database management service, e-mail
service bureau, campaign management tool, Web site navigation system and a
real-time response tracking and analysis system in one integrated solution.
The goal of PermissionPlus is to convert anonymous Web site traffic into
relationships, relationships into customers and customers into high value
lifetime customers.
CMG Direct's traditional database marketing unit is a leading provider of
targeted databases and database services to the direct marketing and Internet
industries. Their proprietary databases include InfoBuyers, Educational and
CMGExpress.net databases. InfoBuyers is a database of over 20 million direct
mail information buyers with over 4,000 segmentations. CMG Direct, now in its
30th year, serves Internet and direct marketing clients.
''My goal with this transaction,'' said Ed Mullen, President and CEO of CMG
Direct, ''was to find a great partner for CMG Direct and PermissionPlus, and
we found a fantastic one. CMG Direct compliments the marketing services unit
of MSGI while PermissionPlus is the perfect partner for MSGI's Internet Group.
''PermissionPlus and Pegasus, combined into the MSGI Internet Group,
creates a tremendous platform for organic growth, Internet acquisitions and
incubations. MSGI's is a powerhouse, and when combined with the potential
synergies associated with CMGI and GE Capital, our minority stockholders, we
have a prescription for great success.''
About CMGI
A recognized leader in the Internet arena, CMGI (NASDAQ: CMGI - news) has
built a sizeable base of Internet operating companies and through its
@Ventures affiliate, a large number of related and synergistic Internet
investments, using the businesses and technologies of these companies to
enhance the value of its core operating companies.
This unique method of creating equity for its shareholders is what CMGI calls
''creating net value.'' Microsoft, Intel and Sumitomo hold minority positions in
CMGI. The CMGI Internet Group consists of its majority-owned subsidiary
companies ADSmart, Engage Technologies, NaviSite, NaviNet, Planet Direct,
Magnitude Network and ZineZone.com.
The company's @Ventures affiliates have ownership interests in Lycos, Inc.
(NASDAQ: LCOS - news), blaxxun, GeoCities (NASDAQ: GCTY - news),
Vicinity, ThingWorld.com, KOZ, Silknet, Chemdex, Speech Machines, Softway
Systems, TicketsLive, Critical Path, MotherNature.com, Raging Bull, Universal
Learning Technology, Visto, Virtual Ink, Ancestry.com, ONElist,
Furniture.com, Boston Financial Network and Asimba.
CMGI also includes CMG Direct, SalesLink, InSolutions and On-Demand
Solutions as majority owned subsidiaries in the direct marketing, fulfillment
and turnkey arenas. Corporate headquarters is located at 100 Brickstone
Square, Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3814.
Additional information is available on the company's Web site
cmgi.com
About MSGI
Marketing Services Group, Inc. (Nasdaq: MSGI - news) is a leader in the
marketing services and Internet marketing industries. MSGI organizes their
business into two divisions, marketing services and their Internet Group. GE
Capital is a significant minority stockholder in MSGI. When this transaction
closes CMGI will become a significant minority stockholder also.
The MSGI's Internet Group provides Internet marketing, e-commerce, Web
development and consulting. Its Marketing Services Group provides direct
marketing and database marketing, telemarketing and telefundraising, media
planning and buying and fulfillment.
MSGI plans to continue making acquisitions and investments in both Internet
and marketing services companies. Its Corporate headquarters are located at
333 Seventh Avenue, New York, New York, 10001. Telephone: 212-594-7688.
Fax: 212-465-8877.
MSGI has offices in Atlanta, Boston, Chicago, Dallas, Detroit, Houston, Los
Angeles, New York, Philadelphia, San Diego, San Francisco and London.
MSGI provides services to more than 8,500 clients worldwide. Additional
information is available on the company's Web site msginet.com. |
