WPP Group plc has agreed to acquire 24/7 Real Media Inc. for $11.75 per share by way of an all cash offer.

The acquisition values 24/7 Real Media at approximately $649m, equivalent to approximately 3% of WPP’s market capitalisation on 16 May 2007.

24/7 is a leading company in the global digital marketing industry. Its media business is one of the largest CPM-based media networks with more than 950 participating sites and 115 million monthly unique users worldwide.

Its search business provides clients with strategic advice and consulting on search engine optimisation and search engine management for Google, Yahoo! and MSN as well as other search engines and shopping comparison services, and its technology business offers the number two publisher-side advertising management platform to more than 400 clients.

24/7 has shown strong organic growth, up 43% in 2006. The company has over 400 people in 20 offices in 12 countries and a strong presence outside the United States, including Asia. The 24/7 team has long experience in the industry and has developed one of the most sophisticated and robust internet technology platforms, that has enabled the business to deliver strong revenue growth, particularly in 2005 and 2006.

The combination of 24/7 and WPP will enhance the enlarged group’s assets and capabilities in digital marketing, delivering benefits to clients from the group’s enhanced technologies. 

Overall, the acquisition will contribute to all of WPP’s three strategic goals; adding to revenues in Asia, increasing the contribution from marketing services and the share of revenue from quantifiable marketing services.

Commenting on the announcement, Sir Martin Sorrell, CEO, WPP, said: “Our clients and therefore our industry are becoming more media and technology driven. 24/7 Real Media significantly enhances our capabilities, technological resources and talent, as well as adding to our geographic coverage and our measurable skills.”

David J. Moore, Chairman and CEO of 24/7 Real Media, said, “This transaction will greatly strengthen our product offerings and will be highly beneficial to clients of both companies. 24/7 Real Media will remain the largest, publisher-focused technology company in the sector, with the second largest installed base of ad serving technology clients globally, and working as part of WPP will be a tremendous benefit to our ad serving and Global Web Alliance clients. 

We look forward to working with WPP to leverage our award-winning Decide DNA search engine marketing platform and our other technologies to create the leading advertiser technology offering in the marketplace."