MyPoints.com, Inc. was down 1 5/32 to 13 25/32 Monday after the company, which provides online loyalty programs, said it signed a definitive agreement to acquire rival Cybergold Inc. for stock worth about $157 million at Friday’s closing prices. Cybergold shares slipped 3/16 to 5 5/16.
“The acquisition of Cybergold establishes MyPoints.com as the clear leader in the Internet loyalty marketing arena,” said MyPoints Chairman and Chief Executive Officer Steve Markowitz. The acquisition, expected to close in the third quarter, will help revenue and earnings, the companies said.
“This transaction makes compelling economic sense,” said MyPoints Chief Financial Officer Tom Caldwell. “On a pro forma basis, we expect a narrower loss on a cash earnings basis for year 2000, as well as a narrower cash loss for fiscal 2001, and on a combined basis, we expect our breakeven to be accelerated at least one quarter.”
MyPoints said it will issue 0.48 of a share for each Cybergold share.