RealTime IT News

CMGI Acquires Tallan for $920 Million

CMGI Inc. added to its business shopping cart Monday with the purchase of e-commerce firm Tallan Inc. in a cash and stock transaction worth $920 million.

The firm, formerly known as Business Data Services, will be absorbed by CMGI Solutions, CMGI's (CMGI) e-business solutions provider.

CMGI Solutions will integrate Tallan's capabilities in data warehousing, data mining and online transaction processing systems, increasing CMGI Solutions' consulting and implementation services. Tallan's current client base includes barnesandnoble.com (BNBN) , Columbia House and priceline.com (PCLN).

Tallan's chief executive officer Jack Hughes will become chief operations officer of CMGI Solutions and report directly to Ronald E. Spears, CMGI Solutions' president and CEO. Hughes will also join CMGI Solutions' board of directors. The new entity will consist of nearly 500 employees.

"The addition of Tallan provides CMGI Solutions with the full complement of talent to meet the significant and rapidly growing demand for its products and services," said David Wetherell, chairman and CEO of CMGI. "Our partnerships with Compaq and others have presented us with the enviable position of having far more business than we can adequately take on. Tallan is a major step in the direction of alleviating this imbalance."

The deal is the second acquisition in as many weeks for the CMGI, which bought auction site uBid.com last Thursday for $407 million in stock.