Traffix Buys Canadian Interactive Gaming Firm

Online direct marketing and database management firm Traffix, Inc. on Tuesday announced a deal to acquire Canadian interactive gaming company Infiknowledge, Inc. in a cash and stock deal valued at $1 million.

Under terms of the deal, the Pearl River, N.Y.-based Traffix would purchase the assets of Infiknowledge for approximately $1 million in a combination of cash, stock and incentives, payable over three years.

Traffix, which operates the GroupLotto Web site, said the deal included Infiknowledge’s email delivery system, Internet games designed for direct marketing, and a team of approximately 30 interactive game and web developers.

The company believes the application of the Infiknowledge email delivery platform will lower its email delivery costs by over 50 percent, resulting in savings of approximately $200,000 per month.

Jeffrey Schwartz, chairman and CEO of Traffix, said the acquisition was part of the company’s strategy to incorporate interactive gaming into its business-to-business strategy “The Infiknowledge acquisition will enable us to offer our customers web technology development and support, such as consumer transaction pages for a marketing program, as another layer of marketing services,” he added.

Traffix said the purchase deal is expected to close in the next few weeks.

In addition to the GroupLotto site, which works as a free lottery to farm for email addresses, Traffix also runs direct marketing programs for businesses on and offline.

The company said its databases contain more than 10 million permission-based, online consumers and in excess of 49 million off-line postal addresses.