ValueClick to buy display advertising company Dotomi for $295 million

Online marketing services company ValueClick yesterday said that it will buy display advertising company Dotomi for around $295 million in cash and stock, its second acquisition this year.

''Dotomi expands our branded display capabilities and direct advertising relationships and offers significant cross selling synergies with our other divisions,'' said Jim Zarley, CEO of ValueClick.

Founded in 2000, Chicago-based Dotomi provides advertisers to send marketing messages directly to potential customers via Internet banners by buying advertising space on content websites and displays advertising material to customers who have agreed to receive such material from the advertiser

Dotomi has more than 100 brands in its client portfolio, including over 40 brands from the Internet Retailer Top 100.

The company has raised $17 million from investors that include Globespan, US Venture Partners, Velocity, and a few Israeli entrepreneurs.

ValueClick said, the acquisition will make it a bigger player in the performance-based marketing sphere and add more than $80 million in revenue to its sales this year.