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 —
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
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
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.