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24/7 to buy Exactis.com

24/7 Media Inc. (Nasdaq: TFSM) said Tuesday it will buy Exactis.com Inc. (Nasdaq: XACT), an e-mail marketing company, in a stock-for-stock transaction valued at about $490 million.

Shares in 24/7 were down 2 1/2 to 47. The company competes with the likes of CMGI's (Nasdaq: CMGI) advertising holdings, as well as DoubleClick (Nasdaq: DCLK) which has recently come under scrutiny for its profiling. Exactis.com, which uses patented technology for e-mail marketing, was up 7 13/16 to 26 1/2, or 42 percent.

"Combining Exactis.com's services and expertise with the massive global reach of the 24/7 Network and 24/7 Mail's 20 million permission-based e-mail addresses under management will enable us to offer an unsurpassed breadth," said 24/7 Media's president and CEO David J. Moore in a company statement.

24/7 will also extend its reach to Exactis.com's clients, which include Sony Music Entertainment, Charles Schwab, MSNBC Interactive News, First Union Corp., USAToday.com and American Express.

Under the terms of the deal, each outstanding share of Exactis.com will be exchanged for 0.60 shares of 24/7 Media. Based on 24/7 Media's Monday closing price, the exchange ratio represents a per share price of $29.70 per share, a 38 percent premium over Exactis.com's 30 day average stock price.

Exactis.com will operate as a separate subsidiary of 24/7 Media. Tom Detmer, president and CEO of Exactis.com, will report to Michael Rowsom, general manager the e-mail division of 24/7 Media.

The transaction is expected to close in the second quarter of 2000.