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
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.
During the past six months Inktomi has signed over 20 portal sites for its
Shopping Engine, such as Infoseek’s GO Network, CNET and NBC’s Snap and
CNNfn, and has signed over 350 merchants. The engine offers more than two
million products, such as computer
hardware, books and flowers.
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.”