Omniture Acquires Offermatica
biz.yahoo.com
Friday September 7, 7:31 am ET
Combination Will Provide the Industry's First and Only Integrated Site Optimization Suite
OREM, UT and SAN FRANCISCO, CA--(MARKET WIRE)--Sep 7, 2007 -- Omniture, Inc. (NasdaqGM:OMTR), a leading provider of online business optimization software, today announced it has entered into a definitive agreement to acquire privately held Offermatica, a leading on-demand A/B testing and multivariate testing company. Under the terms of the agreement, Omniture will pay $65 million for all of the outstanding capital stock of Offermatica, including all outstanding options, warrants and any other rights to acquire Offermatica capital stock.
The acquisition is a key part of Omniture's strategy to deliver the most comprehensive solution for optimizing online business. Offermatica leverages Omniture's recent acquisition of Touch Clarity as the two are highly complementary and together address the spectrum from A/B testing and multivariate testing to behavioral targeting. Offermatica enables companies to define and test the structure and elements of their sites, and Omniture TouchClarity(TM) enables companies to deliver the optimal content to any individual at any time. Previously, if a marketer wanted to test various versions of their site, the process was very manual and cumbersome. Offermatica dramatically changes this by placing easy-to-use testing tools in the hands of front-line marketers, expanding their ability to quickly take action. Once this optimum design is achieved, TouchClarity can apply highly sophisticated algorithms to determine the content that is shown to a specific visitor at a specific time. This combination, with Omniture's analytics as the underlying foundation, provides the industry's first and only integrated site optimization suite.
With this latest move, Omniture will strengthen its position as the industry leader, expanding its market opportunities to both new and existing customers, and enhanced operational capacity by adding approximately 70 Offermatica personnel to its engineering, operations, client services, sales and marketing teams.
"A year ago it became very clear to us that our customers wanted to leverage their data through a range of testing and optimization tools. Once we acquired the leading behavioral targeting technology, our customers continued to validate our thinking that in addition to behavioral targeting, A/B testing and multivariate testing were distinct and critical components of their long-term online strategy. Combining these capabilities into a single, integrated offering, built on patented behavioral targeting and testing technology, answers the market need for a complete optimization solution," said Josh James, CEO and co-founder of Omniture. "We now have the first and only integrated site optimization suite with all the testing and targeting capabilities marketers need to optimize customer experience and deliver improved online performance."
Offermatica, headquartered in San Francisco, California, provides on-demand testing technology that supports A/B split tests or sophisticated multivariate approaches to test visitor response to real-time changes in online content, allowing online marketers to quickly make changes that maximize conversion. Offermatica's more than 100 clients include companies like AIG, Circuit City, CNET, ELOAN, Intuit, Monster.com, Polo.com, Skype, T-Mobile, VeriSign and Williams Sonoma. Prior to this transaction, Offermatica was a member of the Omniture Genesis Network, and its technology had already been integrated with Omniture SiteCatalyst® through Omniture Genesis(TM), a solution designed to automate the integration of marketing applications into the Omniture Online Business Optimization Platform.
"We believe Omniture is the leader in online business optimization and is the right company to bring testing and targeting together," said Matt Roche, CEO of Offermatica. "We are radically changing the speed at which marketers can react to and capitalize on their own data, and the vision we share with Omniture offers a compelling value proposition for customers at any stage of their optimization strategy."
At closing, Omniture will deliver $35 million of the consideration in shares of Omniture common stock and $30 million in cash, $8 million of which will be placed in escrow to secure indemnity obligations of the Offermatica stockholders. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2007 and will be accounted for as an acquisition of a business under U.S. GAAP accounting rules. Omniture expects to provide updated fourth quarter guidance when it announces its financial results for the third quarter. |
