Web analytics service provider WebSideStory has bought Website search and content management company Avivo Corporation, a California Corporation which does business under the Atomz brand and Website.
The $40 million cash and stock deal means WebSideStory will launch a new integrated service for online marketing professionals, WebSideStory announced February 8.
The deal has received accolades already. “[It] makes very good sense in light of this new product suite,” IDC Research director of research for CRM analytics Robert Blumstein said in a statement. “WebSideStory is taking advantage of its scalable, hosted platform and evolving its solution to a new level in a single stroke. This will present marketers with a broader and more attractive set of choices."
The e-commerce manager for toymaker Lego’s shop-at-home service also praised the deal. “We have been a longstanding customer of both companies and are very excited by this news,” said Jarid Lukin in his own statement. “We have already received great value from the existing integration between WebSideStory’s analytics and Atomz' site search capabilities on our Website, and look forward to taking advantage of a larger suite of services to help us with our broader digital marketing needs."
WebSideStory said they’d combine the Atomz-hosted site search and Web content management application with its own HBX Web analytics service. The combined new package will also include an on-demand keyword bid management product, an on-demand Website search application, and an on-demand Web content management product “put[ting] the power of creating and updating Web content in the hands of marketers.”
The deal involves WebSideStory issuing about $3.1 million in stock and $4.3 million in case in exchange for Atomz, with the deal including an earn-out based on Atomz revenues over the next fifteen months.
The chiefs of both companies said the deal was a big step forward for each.
“As the importance and complexity of digital marketing have soared in recent years, our customers have asked us with increasing frequency for an integrated suite of management applications,” said WebSideStory chief executive Jeff Lunsford at the deal announcement.
“They have told us the neutrality and real-time nature of our services makes us the ideal launching point for creating a centralized suite of products to manage all of their online marketing initiatives,” Lunsford continued. “We are proud to welcome the Atomz team to help us deliver on this unique proposition.”
“The combination of WebSideStory and Atomz is a strategic step in our mission to serve customers with innovative products and superior service, all delivered through the on-demand model,” said Atomz chief executive Steven R. Kusmer.
