The NonProfit Times - February 15, 2008 - (Page 9)

LISTS PAUL CLOLERY Consolidation Continues May Development included in deal for DMI, ALC gets MKTG nother day, another list company gets acquired. Consolidation of list management and brokerages continued last month, with the purchase of former king of the hill Direct Media International (DMI) by the new behemoth InfoUSA and ALC acquiring the list management division of MKTG Services. These follow the acquisition by InfoUSA of Walter Karl, Edith Roman, Rubin Response, Millard, Mokrynskidirect,American Church Lists and Jami. InfoUSA, a public company based in Papillion, Neb., is traded on the NASDAQ. In late January, the stock was at $8.84 per share, down from its 52week high of $12.30. Its 52-week low was $8.05 per share. DMI, based in Greenwich, Conn., was purchased for $18 million in cash, according to insiders. Larry May, DMI’s chief executive officer, declined to discuss the deal’s financial terms. May explained that InfoUSA had made overtures during the past several years.When other firms made inquires regarding merging with or buying A DMI, the management team decided to The senior management of May Destart listening to offers. He declined to velopment Services, the agency he identify the other potential suitors founded that works with charities and other than to say that there were “four fundraising, will also remain in place, or five.” But insiders said that one of the he said. serious bidders was Abacus Direct in This is the second time DMI was Broomfield, Colo. purchased. In 1996, it was purchased In an exclusive talk with The Non- by Acxiom for $25 million, according Profit Times, May explained that DMI to reports filed with the Securities was an employee-owned business. and Exchange Commission. A few Some of the senior exyears later, DMI was DMI manages ecutives and staff had bought back for a fracbeen with the comtion of the sale price. more than pany for decades and DMI manages more 30 charity lists are in their 60s.“Part of than 30 charity lists and has brokered and has brokered more it was aging,” he said of more than the decision to sell. than 350 million names Another key to the 350 million names for charities, May said. deal, he said, was autonMeanwhile, Princefor charities omy. May said while ton, N.J.-based ALC grabsome back-office operations will be bed the list management business of merged,the firm will be operated inde- MKTG in Newton, Pa. MKTG’s compendently. DMI’s senior management piling business had previously been will remain in place. May said he jettisoned. signed a five-year deal. Dave Florence “We’re all very excited about this who founded the firm in 1969, has acquisition,” said ALC Chairman and agreed to stay on for several years, as CEO Donn Rappaport. The MKTG has Rick Sarli, the chief operating offi- portfolio includes more than 80 list cer, May said. management accounts. “We’re equally excited about the MKTG staff that will be joining our team,” added Lori Magill-Cook,ALC executive vice president, who will oversee the business. That staff includes Kerry Fischette, a 13-year MKTG veteran, and Billie Risser. ALC had 53 nonprofit data management clients. The MKTG acquisition brought over an additional 17, according to Magill-Cook. The consolidation is having an impact, according to Martin Stein, chairman of RMI Direct in Danbury, Conn., who equated the state of some list companies to restaurants that have different names but the same ownership and menus.“You can’t tell where you are eating. It’s all the same thing,” he said. Stein said the firms that remain independent offer choice to nonprofit clients. The consolidation “limits what’s available from those companies,” he added. “The clients and members are the ones most hurt by this,” he said.“You should answer to clients, not shareholders,” said Stein. NPT FEBRUARY 15, 2008 THE NONPROFIT TIMES www.nptimes.com 9 http://www.runwalkride.com http://www.runwalkride.com http://www.boxwoodtech.com http://www.boxwoodtech.com http://www.boxwoodtech.com http://www.nptimes.com

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The NonProfit Times - February 15, 2008 Raising $1 Billion Rebranding A Tradition Making The Pitch Contents Message Matters Consolidation Continues Coordinating Your Message All About The Money Ho-Ho-Hoping At Christmas Best Practices It’s A New Year NPT Jobs Resource Directory

The NonProfit Times - February 15, 2008

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