Hellman & Friedman LLC to Acquire DoubleClick Inc. for $1.1B

Apr 26, 2005

DoubleClick Inc., a provider of data and technology solutions for marketers, advertising agencies, and Web publishers, has signed a definitive agreement to be acquired by Hellman & Friedman LLC, a San Francisco-based private equity firm. The transaction is expected to be completed in the third quarter.

Investing alongside Hellman & Friedman will be JMI Equity, a San Diego-based venture capital firm exclusively focused on the software and business service industries. Hellman & Friedman and JMI Equity have previously partnered together on a number of software related investments, including Blackbaud Inc. (BLKB), Mitchell International, Inc., and Vertafore, Inc.

Under the terms of the agreement, DoubleClick stockholders will receive $8.50 in cash for each share of DoubleClick common stock, representing a 10.6% premium over the average closing price of DoubleClick's stock for the last 30 trading days. The aggregate consideration to be paid to DoubleClick stockholders is approximately $1.1 billion. DoubleClick's existing Zero Coupon Subordinated Notes due 2023 in the principal amount of $135 million will remain outstanding, subject to the rights of the holders to require DoubleClick to repurchase such notes at par following consummation of the transaction.

Following the closing, Kevin Ryan will step down as CEO of DoubleClick to pursue other opportunities. At the closing, David Rosenblatt will continue to oversee the TechSolutions division as its CEO, and Brian Rainey will continue to lead the DataSolutions division as its CEO. A new board of directors and chairman will be appointed post closing.

The transaction has been approved by DoubleClick's board of directors. The closing of the transaction is subject to various conditions, including approval by the stockholders of DoubleClick, the expiration of the applicable waiting period under the Hart-Scott-Rodino Act, the closing of debt financing arrangements set forth in a commitment letter received by Hellman & Friedman, and other customary closing conditions. A special meeting of DoubleClick's stockholders will be scheduled as soon as practicable following the preparation and filing of the proxy materials with the Securities and Exchange Commission.
(www.doubleclick.net; www.hf.com; www.jmiequity.com)