I haven't seen any formal public mention (see update at end) yet, but today should be the day that Vendare and Netblue announce externally a merger. Netblue, formerly YFDirect made its name and some healthy returns by popularizing incentive marketing. YFDirect stands for YourFree and the company under Ken Chan was among the net's largest advertisers offering users free dvds (free with an "*"). If memory serves correct, the company took in funding from Oak Ventures, around $18 million in 2005. Not long after, it saw a departure of some of its key executives and long-time stakeholders.
Vendare has a longer and even more complicated history. Look out for a future post that details it. After rapid growth and two rounds of layoffs, they too find themselves without the original management team that helped grow the company. The company has a diverse portfolio of products / sites and in theory should benefit from Netblue's better technology platform as well as realizing other economies of scale by merging.
Update: The press release has been released and employees briefed. Read it here http://netblue.com/june13.html . The text is below.
Vendare and Netblue Announce Merger
Strategic fit creates leading provider of performance-driven online marketing solutions
Vendare, an innovator in comprehensive media and marketing solutions, and Netblue, a pioneer in high volume, performance-based online customer acquisition, have signed an agreement to merge the two companies. The merger creates a leader in performance-driven online advertising, delivering extensive, multi-channel distribution and flexible, comprehensive marketing solutions for advertisers and publishers. The merger is subject to stockholder approval, which is expected to be obtained in early July.
"Combining Netblue's innovative product platform with Vendare's advertising and affiliate networks and strong email capabilities creates a powerful solution for advertisers," said Linda Fayne Levinson, Vendare's Chairman and Chief Executive Officer. "With these compelling assets, VendareNetblue will be the best place for advertisers looking for results online."
"As online marketing continues to grow, we believe that advertisers and publishers will want to work with a few key players who can deliver high quality, measurable results," added Art Shaw, Chairman and CEO of Netblue. "This merger enables us to deliver the scale, breadth of solutions and performance that the market demands."
Founded in 1999, Vendare provides a complete portfolio of solutions for advertisers and web publishers, including display advertising, co-registration marketing, email marketing, lead generation, promotions, advergaming, and direct navigation. Reaching more than 120 million unique consumers every month worldwide, Vendare connects advertisers with consumers and helps publishers maximize pay-for-performance revenue opportunities.
Since 2002, Netblue's online performance-based marketing platform has delivered millions of profitable customers and qualified leads to advertisers, all on a pay-for-performance basis. Netblue optimizes its proprietary campaigns across all online channels – display ads, affiliates, search and email – and manages hundreds of campaigns across 2,000+ sources of traffic.
Upon closing of the merger, Art Shaw will be CEO of the new company, while Linda Fayne Levinson will be Chair of the Board of Directors. The company will temporarily work under the name of VendareNetblue until a new name is announced later this year.
