Engage, Inc. (Nasdaq: ENGA) rose 1 1/4 to 16 5/8 Tuesday after CMGI, Inc. (Nasdaq: CMGI) and Compaq Computer Corp. (NYSE: CPQ) agreed to invest a combined $75 million in the company.
Engage, an Andover, Massachusetts-based online marketing company, is one of Internet holding company CMGI’s affiliates. The company said it will use proceeds from the investments to fund continued expansion.
Compaq and CMGI will invest $25 and $50 million in Engage, respectively, and will receive about five million common shares in exchange.
“The expansion of our strategic relationship with CMGI and Compaq signifies continued validation of our business strategy,” said Engage President and Chief Executive Officer Paul Schaut.