WebSideStory Announces Merger with Visual Sciences

Feb 03, 2006

WebSideStory, Inc., a provider of on-demand digital marketing applications, has announced the acquisition of Visual Sciences, LLC. The company announced a merger with privately held Visual Sciences, LLC, a provider of streaming data analysis and visualization software and on-demand services with 40 employees and over 40 customers utilizing its scalable analytical engine.

The total value of the consideration payable to the former holders of interests in Visual Sciences based on yesterday's closing price is $57.3 million and is comprised as follows: $22.0 million in cash; unsecured senior notes in the principal amount of $20.0 million; 568,512 shares of common stock to be held in escrow until March 31, 2007; and 189,511 shares of restricted common stock. In addition, in connection with the merger WebSideStory issued the former holders of interests in Visual Sciences warrants to purchase 1,082,923 shares of common stock with an exercise price of $18.4685 per share, exercisable for the next 18-months, and options to purchase 350,000 shares of common stock to the former employees of Visual Sciences.

The transaction closed today. Visual Sciences will operate as a wholly owned subsidiary of WebSideStory, Inc. Co-founders Jim MacIntyre and David Scherer will serve as CEO and CTO of the business unit, respectively.

(www.WebSideStory.com; www.visualsciences.com)