Google acquires e-commerce company Channel Intelligence for $125 million
Google just acquired the coupon-focused company Incentive Targeting and retail locker startup BufferBox in November, and it's now further bolstered its e-commerce offerings with an acquisition of Channel Intelligence for $125 million. That company is part of the ICG Group, and offers a variety of marketing and shopping services (primarily concerned with boosting sales) to other companies and online retailers, including Staples and Best Buy. It's also partnered with Google itself in recent years on Google Shopping. Barring any unforeseen hiccups, the company expects the acquisition to close sometime in the first quarter of this year.
Update: We've now also gotten this statement on the acquisition from a Google spokesperson: "We want to help consumers save time and money by improving the online shopping experience. We think Channel Intelligence will help create a better shopping experience for users and help merchants increase sales across the web."
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ICG Company Channel Intelligence to be Acquired by Google
Radnor, PA - (February 6, 2013) - ICG Group, Inc. (Nasdaq: ICGE) ("ICG") is pleased to announce that one of its consolidated companies, Channel Intelligence, Inc. ("CI"), has entered into a definitive agreement to be acquired by Google Inc. (Nasdaq: GOOG) for $125 million in cash. The transaction, which is subject to customary closing conditions, is expected to be completed in the first quarter of 2013.
ICG is expected to realize approximately $60.5 million in connection with the transaction. A portion of ICG's proceeds will be held in escrow and will be subject to potential identification claims. ICG does not expect to owe any income taxes in connection with the transaction.
"Building upon the perseverance and strong foundation laid by CI's founder Rob Wight, I am extremely proud of the work we accomplished at CI," said Doug Alexander, CEO of CI and President of ICG. "With the talent and hard work of the entire CI team, we successfully navigated a very complex marketplace, ending a record year that culminated in this very exciting acquisition."
"The sale of CI to Google is a testament to the quality of its technology and its strong team led by ICG President, Doug Alexander, who positioned the company to succeed in the rapidly growing e-marketing industry," said Walter Buckley, CEO of ICG. "As drivers and architects of CI's growth and success, we are very pleased with this outcome."
"I am thrilled to see the recognition of value for what this company has accomplished," said Rob Wight, Founder and Chairman of CI. "Our vision for CI started with the desire to simplify the online shopping experience. Under the leadership of Doug and ICG, CI greatly enhanced its value proposition to its customers and partners. I am very proud to see our vision executed to this great outcome."
About ICG
ICG (Nasdaq: ICGE) identifies, capitalizes and grows companies in the cloud-based software and services sectors. These companies transform the way business is done by enabling enterprises to increase efficiencies and improve and automate critical processes. ICG leverages its unique expertise to carefully identify companies based on their potential to become market-changers and market-leaders. ICG is focused on building profitable businesses in the cloud-based software and services sectors by infusing them with management expertise, strategic and operational guidance, as well as growth capital.
About Channel Intelligence
Channel Intelligence helps marketers outperform online with its CI Boost services: Facebook Platform, Where-to-Buy, Product Search Engines and Shopping Engine solutions. Relied upon by companies such as Target, Philips, HP, Neiman Marcus, Best Buy and Kimberly-Clark, CI tracks nearly 15 percent of US transactions online and drives $2 billion in sales annually in referred sales online in computing products, home improvement products, appliances, consumer electronics, toys and a variety of other consumer packaged goods. CI is owned by ICG and Aweida Capital Management. Learn more at www.channelintelligence.com.
