CoActive Marketing Group (CMKG) Acquires mktgpartners; Accretive to 2008 Earnings

June 30, 2008 4:56 PM EDT

CoActive Marketing Group, Inc. (Nasdaq: CMKG) has acquired privately-held mktgpartners. The acquisition, which closed today, diversifies CoActive's client base, lessens client concentration, and is expected to be accretive to CoActive Marketing's earnings in its current fiscal year. Mr. Tarzian will remain chief executive of CoActive Marketing Group, and Mr. Horsey has been named CoActive's division president for entertainment, sports and events.

mktgpartners recorded $14.1 million in gross sales and $4.3 million in operating revenue in calendar 2007, and brings a strong team, premier clientele and rapidly growing business to the combined organization that reinforces and accelerates the strategies of CoActive.

The consideration for the acquisition consisted of $3.25 million in cash, and 332,226 shares of CoActive Marketing Group common stock, valued at $1,000,000. Also in connection with the acquisition, CoActive issued 166,113 shares of restricted CMKG Common Stock, valued at $500,000, to certain employees of mktgpartners who joined CoActive. Those shares, 42% of which were issued to Mr. Horsey, vest annually in equal installments over five years.

CoActive Marketing Group, Inc., through its wholly owned subsidiaries Inmark Services LLC (Inmark), Optimum Group LLC (Optimum), U.S. Concepts LLC (U.S Concepts) and Digital Intelligence Group LLC, (Digital Intelligence) is an integrated sales promotional and marketing services agency. [SM]

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