Barring any unforeseen developments, the American List Counsel proposed deal to take over Direct Media Inc., will collapse on Friday, Robert Tomlinson Jr., CFO of ALC, Princeton, NJ, told DIRECT Newsline.
When the non-binding letter of intent signed by ALC and DMI’s parent Acxiom expires on Friday, “ALC and Acxiom do not anticipate renewing that non-binding letter,” said Tomlinson, “By not renewing it, we [show we] don’t have an intent to purchase DMI.”
The deal soured because the business-to-business broker group at Greenwich, CT-based DMI didn’t feel there was enough value for them in the deal, Tomlinson said. The BTB section represents half the assets of the business.
“We tried to convince them that we would try to give value in terms of options and stock,” he said, referring to the possibility of ALC becoming public after the acquisition was finalized. But the brokers felt that was not good enough and made it plain they would quit their jobs if the deal went through, Tomlinson added. DMI brokers have no employment contracts with Acxiom.
Outside sources speculated that the BTB brokers are planning a break away from DMI to form their own business.
Ralph Drybrough, leader of Business Brokerage Group at DMI, could not be reached for comment. Charles Morgan, Acxiom company leader, declined comment through a spokesperson.
ALC’s plans at the moment, according to Tomlinson: “We will continue to investigate acquisition activities. As a business, our long-term view is to continue organic growth and external growth through acquisition,” he added.
