The merger of U.S.-based FindWhat.com and European-based Espotting is intended to provide the united companies with leverage in the area of performance-based marketing internationally. The combined company offers paid listings services covering a variety of geographic and vertical marketplaces on three continents and reportedly has relationships with over 100,000 online businesses.
Under the terms of the merger agreement, which was completed on July 1 2004, Espotting stockholders received 7.0 million shares of FindWhat.com common stock and approximately $11.5 million in cash, in accordance with a net asset adjustment. FindWhat.com is also issuing options to purchase approximately 700,000 shares of FindWhat.com common stock, at a weighted average exercise price of $4.71, in exchange for options and warrants held by Espotting employees and affiliates. The Espotting Network forms one of four divisions for FindWhat.com, which also acquired Miva and Comet Systems during the first six months of 2004.