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.