L90 (Nasdaq: LNTY) will issue more than $19 million in stock to buy a direct marketing company.
After market close Monday, online advertising firm L90 said it will issue 2 million shares to buy privately-held webMillion. At Monday's closing prices, the deal is worth $19.25 million.
Shares of L90 fell 5/16 to 9 5/8 in Monday's regular trading prior to the announcement. The company currently has about 22 million shares outstanding.
webMillion sends e-mail promotions to people who register on its website to win prizes. The companies said the acquisition would boost L90's sweepstakes, promotions and direct marketing business.
L90 already handles ad sales and ad servers for webMillion. The companies cited June figures from PCData Online which indicate webMillion ranked eighth in overall page views.
"Direct marketing is one of the fastest growing parts of our business, and this acquisition directly complements our full-service Internet advertising solution," L90 CEO John Bohan said.>