Alliance Data Systems Corporation (ADS) Buying Online Advertising Firm Conversant Inc (CNVR) for $2.3 Billion

Conversant Inc (NASDAQ:CNVR) didn’t need to advertise itself for Alliance Data Systems Corporation (NYSE:ADS) to swoop in and make an offer for the online advertising firm that was too good for them to pass up. The Dallas-based credit card processor and marketing agency will pay $2.3 billion in cash and stock for Conversant Inc (NASDAQ:CNVR). Emily Chang reported the details of the deal last night on Bloomberg.

Alliance Data Systems logo

“Alliance Data is buying ad technology firm Conversant for $2.3 billion. Conversant, formerly known as ValueClick, helps companies personalize internet ads and target users based on their browsing history. Alliance data manages credit cards and loyalty programs, and will use the acquisition to expand its digital marketing business,” Chang reported.

News of the deal sent both stocks soaring in after hours trading and into today’s trading session. The deal, which pays Conversant Inc (NASDAQ:CNVR) stockholders $35 per share, which was a 31% premium on last night’s closing price had the obvious impact of sending their shares skyrocketing from $27 to just under that $35 level, a 30% increase.

Alliance Data Systems Corporation (NYSE:ADS) is also up a stout 2.20% on the news to $258.44 in afternoon trading. That’s because the acquisition of Conversant Inc (NASDAQ:CNVR) is seen as a perfect complement to their existing business, which does work both online and off. Conversant Inc (NASDAQ:CNVR) on the other hand is primarily a digital ad-based agency with a network of advertisers and publishers that will help fast track a broader push into online advertising for Alliance Data Systems Corporation (NYSE:ADS).

It’s expected that Conversant Inc (NASDAQ:CNVR) will be merged into Epsilon, Alliance Data Systems Corporation (NYSE:ADS)’s existing online marketing unit which partners with both Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) to allow advertisers on those platforms to offer rewards programs to customers.

Disclosure: none