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Go2Net Buys Payment Authorization Service

Go2Net Inc. Thursday acquired Authorize.Net Corp., a payment authorization service for online businesses, for $90.5 million in cash and stock.

Go2Net will pay $77 million in stock and $13.5 million in cash. The purchase price may be increased if Authorize.Net's revenues meet unspecified targets over the next two years.

Go2Net said the buy will provide a critical component in its efforts to drive business to its HyperMart and Virtual Avenue business hosting and e-commerce solutions providers.

Authorize.Net provides server-based transaction processing that enables businesses to process, authorize and manage credit card and electronic check purchases. The company currently has more than 34,000 subscribers. The company's 22 employees and co-founders David Heaps and Jeff Knowles will remain with Authorize.Net which is headquartered in Provo, Utah.

Go2Net Chief Executive Officer Russell Horowitz said the acquisition brings the company a proven record of commerce-enabling technologies and a customer base of several thousand.

"This is also significant in adding further diversification of Go2Net's foundation of revenue sources," he said.



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