A private equity firm is paying just over a billion dollars for online advertising firm DoubleClick.

Hillman and Friedman will pay $1.1bn for DoubleClick. The price works out at $8.50 a share, a ten per cent premium on DoubleClick's average share price for the last month.

Kevin Ryan, chief executive at DoubleClick, will step down once the deal is closed. A new board of directors and chairman will be appointed once the deal goes through.

JMI Equity, a VC firm from San Diego, is also investing an undisclosed amount.

The deal should close in the third quarter, assuming shareholders and regulators are happy. DoubleClick's board of directors has already approved the deal.

DoubleClick has suffered despite the recent upturn in online advertising. At the end of last year it hired Lazard to look at other strategies - Lazard advised the firm through the takeover.

Press release available here.®

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