Frontline Direct Inc.

The Company

Frontline Direct Inc. (Frontline or the Company), located in San Diego, California, provides database marketing and lead generation services to blue chip corporate clients, advertising agencies, and affiliate networks. Frontline’s proprietary e-mail delivery, tracking, and analytics technology platform enables advertising clients to conduct targeted e-mail marketing campaigns in a privacy-protected and CAN-SPAM compliant environment to effectively increase customer leads, online sales, and brand recognition.

The Situation

Frontline sought a leading strategic buyer that could further drive growth by leveraging the Company’s proprietary technology platform, its established market position, strong advertiser relationships, and large amounts of consumer data. The founding shareholder was motivated to remain with the business post closing and sought an acquirer that shared her vision for the continued growth of the Company.

The Transaction

Frontline retained KPMG Corporate Finance as its exclusive adviser in the sale transaction. KPMG Corporate Finance conducted a competitive sale process and identified acquirers that recognized and valued Frontline’s key attributes. The founding shareholder selected UK-based Adconion Media Group (Adconion), formerly known as EuroClick, as its acquirer. Adconion acquired Frontline to expand its footprint in the U.S. and to enhance its ability to offer behavioral targeting advertising via the Internet. Throughout the sale process, KPMG Corporate Finance advised the owner on all aspects of the deal, including acquirer identification, strategic positioning, valuation, and deal structure. KPMG Corporate Finance’s knowledge of the online advertising industry, relationships with strategic buyers, and the ability to manage multiparty negotiations were fundamental to the consummation of this transaction.