eSynergies to Acquire e2 Communications

Christopher Saunders

Updated · Oct 17, 2001

Web services firm eSynergies continues its string of acquisitions, on Monday offering to buy e-mail marketing player e2 Communications.

The all-stock purchase, specific terms of which were not disclosed, will give Newport Beach, Calif.-based eSynergies access to the approximately 400 customers of e2, including JC Penney, Starbucks, Eckerds, Jack Henry & Associates and the National Wildlife Federation.

eSynergies also said it would combine Dallas-based e2 with its existing e-mail marketing subsidiary, Salesmation, with the new company being called e2 Communications.

e2's e2Mail Center provides ASP-based mailing tools for both customer acquisition and retention, while eSynergies said Salesmation's technology would add individualized messaging, rich media and viral marketing capabilities to the offering.

“e2 Communications is one of the premier companies in the interactive e-mail space,” said eSynergies chief executive Ted Marr. “This acquisition will expand our eCRM offerings and provide us with the opportunity to market complementary applications and services.”

eSynergies made headlines in July when it picked up the assets of bankrupt interactive shop Worldwide Xceed Group, in a bid to provide clients with a suite of Web marketing and design services. Marr said that strategy is on track with Monday's proposed acquisition of e2.

“By adding e2 Communications to eSynergies' family of companies … we can offer a more complete solution and will increase our ability to attract new clients and to better serve our joint customer base of more than 450 companies.”

The companies also say there's an opportunity to cross-sell e2's services to current eSynergies clients.

“eSynergies' global approach and focused business strategy will help e2 expand its offerings much more rapidly in terms of technology, customers and market opportunities,” said e2 president and CEO Jeff Farris. “Their complementary skills and services will enable us to continue offering customers better results and opportunities.”

At any rate, e-mail is proving to be one of the most resilient aspects of the troubled Internet advertising sector, with industry leader DoubleClick (NASDAQ:DCLK) reporting that a large chunk of its quarterly revenues had come from e-mail technology and media sales. Meanwhile, a recently conducted study by the Association of National Advertisers suggested that e-mail was one of the few online media likely to experience an increase in spending.

Reprinted from Internet Advertising Report.

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