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Ad-linked search engine company GoTo.com said it will acquire Cadabra Inc., an Internet-based provider of comparison-shopping services, for $250 million comprised of $8 million in cash and the balance in GoTo stock.

The deal is expected to be completed as early as January 2000. GoTo.com said it will take advantage of Cadabra's product search and comparison technology to take GoTo's online marketplace to the next level -- online shopping.

Integrating Cadabra's shopping guide will allow GoTo to introduce buyers looking for specific products, price points and features to a range of manufacturers and merchants.

GoTo and its affiliates will offer an improved online marketplace by matching the right products, at the right price, right at the point of purchase decision.

Cadabra has invented a flexible data normalization technology called Dynamic Data Integration (DDI), a parametric search engine that allows consumers to comparison-shop online using everyday shopping terminology and techniques.

"Cadabra is a logical evolution for our search marketplace. Together we will be able to provide a more comprehensive and more valuable matching of buyers and sellers within our targeted, pay-for-performance model," said Jeffrey Brewer, CEO of GoTo.com.

"We are delighted to be joining GoTo.com, and to be able to leverage their marketplace success to bring Cadabra's comparison shopping engine to a much wider audience," said Narinder Singh, CEO of Cadabra.

Advertisers will have the ability to target products and services to highly qualified buyers, GoTo.com said. For example, a merchant that sells a CD player that matches the above description will be able to bid for priority placement in that category.

GoTo.com advertisers bid in an ongoing auction for priority placement in the search results with the highest bidder's site appearing first in the results.