Net Perceptions Acquires KD1

Personalization firm Net
Perceptions this week bought data analysis company KD1 for around $126 million in stock, in a
bid to create a more compelling technology solution for marketers.

The deal adds KD1’s data analysis and integration technology to what Net
Perceptions already does — collaborative filtering to make
recommendations to customers. The combination, in the eyes of Net
Perceptions, gives it an important array of customer-centric data that
marketers need.

“We believe this combination sets a new standard for retailers both on-line
and off-line,” says Steven Snyder, president and chief executive officer of Net Perceptions.

“KD1 is exceptional at providing retailers with the ability to understand
behavior-based segments, such as most valuable customers, those at-risk and
bargain hunters. That power is now combined with Net Perceptions’
award-winning solutions to give retailers the ability to make realtime,
one-to-one recommendations to customers on the Web, in call centers, via
e-mail or in the store.”

The acquisition also beefs up Net Perceptions employee list. The company is
adding KD1’s 60 workers to its payroll, which will give it a total of 280
employees.

The deal is subject to the approval of KD1’s shareholders, but company
officials say they have enough votes to carry the decision.

KD1’s client list includes Garden.com,
J.C. Penney, Lowe’s, Walgreens, OurHouse.com and Rite Aid.