NetZero plans to acquire Simpli.com
By Mike Tarsala, CBS MarketWatch
Last Update: 12:05 PM ET May 25, 2000 NewsWatch
Free Internet access provider NetZero agreed Thursday to acquire privately held marketing software and search technology company Simpli.com for a combination of stock and cash worth roughly $23.6 million.
NetZero (NZRO: news, msgs) plans to offer Simpli.com about 2.5 million shares of its stock, as well as $2.6 million in cash. The transaction is expected to be completed by October. Providence, R.I.-based Simpli.com will become a wholly-owned subsidiary of NetZero.
The acquisition is expected to help NetZero improve its targeted marketing. The Simpli.com software can analyze keywords, as well as Web site click data It aims to target marketing pitches that are aligned with consumers' particular interests. In a statement, NetZero said it intends to "take targeted, personalized advertising and e-commerce to unprecedented levels."
Mark Goldston, NetZero's chief executive, says the software won't create an onerous experience for consumers.
"Our whole goal at NetZero is to try and show you things that you're interested in," Goldston said. "We want to offer what specialty magazines offer over general magazines. In those publications, the ads you see aren't a nuisance; they're useful, and you enjoy it."
The Simpli.com acquisition will benefit NetZero's new CyberTarget online market research division, the executives said. CyberTarget was formed a month ago to offer online market research to advertisers and marketers.
NetZero has about $280 million of cash in the bank, according to Goldston, counting the $144 million the company received last month for selling 10 percent of the company to Qualcomm (QCOM: news, msgs). NetZero is working with Qualcomm to bring the telecom company's wireless Internet services to NetZero customers.
Simpli.com's CEO, Jeff Stibel, says he plans to remain with the merged company. He will become general manager of NetZero's Simpli.com division.
NetZero shares rose 3/16 to 8 9/16 in Thursday trading.
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