Epsilon Acquires DoubleClick’s E-Mail Division

Epsilon, a business unit of Alliance Data Systems Corp., reached an agreement on Feb. 14 to acquire DoubleClick’s Email Solutions operating unit for approximately $90 million. The transaction is expected to close before the end of the first quarter 2006.

New York-based DoubleClick Email Solutions is a largest permission-based e-mail marketing service provider, and has approximately 220 full-time employees, who will be integrated into Epsilon under the Epsilon Interactive operating unit and brand.

The combination of DoubleClick Email Solutions and New York-based Epsilon Interactive creates a larger player among targeted email marketing service providers, according to a statement from Epsilon Interactive president Al DiGuido.

DoubleClick Email Solutions’ offerings will add additional management, scale, clients, partnerships, and a global sales presence to Epsilon Interactive’s technology and marketing service capabilities particularly in the areas of strategic consulting, client services, delivery optimization, and analytics.

According to DoubleClick Email Solutions, its annual revenue is slightly above $40 million, and growing at a double-digit rate. The company’s clients in the retail sector include J. Crew, Buy.com, and Patagonia.

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