Inktomi Acquires Impulse! Buy Network
Page 1 of 1
Terms of the deal call for Inktomi to acquire all outstanding stock and assume all stock options of Impulse! in exchange for 900,000 shares of Inktomi common stock. Based on current prices, the deal is worth roughly $112 million. Inktomi will account for the purchase as a pooling of interests and expects to finalize the deal by June 30, subject to shareholder approval.
Inktomi said it plans to fully integrate the Impulse! Buy software into its Shopping Engine by the summer. Impulse! Buy Network will operate under the Inktomi name with employees of the company joining Inktomi.
Inktomi's Shopping Engine is aimed at portal users seeking a comprehensive shopping experience and providing e-tailers with targeted promotional programs aimed at increasing sales and building customer loyalty. Through the integration of both companies, the Inktomi Shopping Engine will offer e-tailers the ability to create incentive programs, including discount specials, point-of-purchase displays and sweepstakes that can be distributed to Inktomi's portal customers. In addition Internet users can gain greater variety and choice in purchasing products.
Burlingame, Calif.-based Impulse! Buy's software is used by more than 80 merchants, including Lands' End, K-Tel and WalMart and is located on several portal sites including America Online, AT&T WorldNet, Infoseek's GO Network and MSN. The company's backers include Yahoo!, SOFTBANK Technology Ventures and private investors.
"Getting shoppers to push the 'Buy' button will require a range of robust product promotion and merchandising tools," said David Peterschmidt, president and chief executive officer of Inktomi Corp.
"With the acquisition of Impulse! Buy, Inktomi will enable merchants to customize, cross-market and up-sell their products, bringing the best of real-world merchandising to the Internet," Peterschmidt said.
"Inktomi and Impulse! Buy share the same vision of building the best-of-breed online shopping and merchandising engine in the business," said Mark Goldstein, president and chief executive officer of Impulse! Buy Network. "We are excited to be joining forces with Inktomi to further enhance our software innovation and distribution reach worldwide by leveraging Inktomi's scalable technology, top-tier talent and proven OEM business model."