Adding another high-profile e-commerce merchant to its roster, comparison shopping technology play DealTime has struck a deal to power Terra Lycos's U.S. shopping portal.

The deal is significant for New York-based DealTime, which competes head-to-head in almost ever market with entrenched comparison-shopping players like MySimon.com and Buy.com.

The deal allows DealTime to grab millions of new eyeballs and shoppers for its paying merchant partners, who pony up to have DealTime's technology to generate leads and refer online shoppers to their e-commerce offerings.

Under the terms of the agreement, Lycos Shop would integrate DealTime's technology and shopping tools to allow shoppers to compare products, prices and stores in a wide variety of categories, including electronics, computers, appliances, toys and jewelry.

Financial terms of the deal were not disclosed but it is common knowledge that DealTime collects a per-lead fee from its 300 e-commerce partners for e-commerce transactions done directly from the price-comparison shopping software.

"By incorporating DealTime's shopping platform into our site, we are giving our users access to some of the industry's most advanced shopping technology while simultaneously reducing our operating costs and increasing revenue," said Mark Stoever, vice president of Terra Lycos.

It is potentially a sizeable deal for DealTime as it puts its software before uses in 43 countries in which Terra Lycos operations. The network reaches approximately 103 million unique monthly visitors worldwide

DealTime, which refiled for a $50 million IPO last December is backed by Bertelsman, AOL/Time Warner, Bank of America and Singapore Telecom.

Although the company has a technology licensing deal (and investment from) America Online to make referrals to AOL's merchant partners, DealTime has put its software on third-party merchants who compete directly with AOL.

DealTime has a similar deal with the iWon shopping portal.

Editor's note: Naraine writes for @NY, an internet.com site.