Alliance Data Systems' Epsilon announced it has reached an agreement to acquire DoubleClick Email Solutions, a leading provider of targeted email communications and marketing services and an operating unit of DoubleClick. DoubleClick Email Solutions' 220 full-time employees will be integrated into Epsilon Interactive (formerly Bigfoot Interactive) operating unit and brand. Total consideration for the transaction is expected to be approximately $90 million.

The annual revenues of DoubleClick Email Solutions are slightly greater than $40 million and growing at a double-digit rate. The acquisition is anticipated to close by the end of the first quarter.

With the current deal, Epsilon continues to build its interactive marketing platform, adding to its acquisition of Bigfoot Interactive (now Epsilon Interactive) in September 2005 and integration of Frequency Marketing Inc. (FMI) in November 2005.

The combination of DoubleClick Email Solutions and Epsilon Interactive creates a leading international player among targeted email marketing service providers. Representing nearly 400 blue-chip brands, DoubleClick Email Solutions has a strong presence in retail (clients include J. Crew, Buy.com and Patagonia), travel (Intercontinental Hotel Group and Orbitz), consumer product goods (Unilever and P&G) and media/publishing (AOL, Meredith, Reed Business and CondeNet).

The sell off of a piece of DoubleClick was not unexpected. The company's sale to a group of private investors last year resulted in a reorganization and the appointment of two CEOs, one for Abacus and one for both its web and email advertising sections, portending the structural cleave lines of DoubleClick assets that might be eventually sold off.