WebSideStory to Acquire Atomz and Launch Active Marketing Suite

Feb 11, 2005

WebSideStory, Inc., a provider of on-demand Web analytics, has announced an agreement to acquire Avivo Corporation, a California corporation doing business as "Atomz," and the launch of a new suite of integrated services for online marketing professionals. Based in San Francisco, Ca., Atomz is a provider of on-demand digital marketing applications, including site search and Web content management.

Upon completion of the merger, WebSideStory will combine Atomz's hosted site search and Web content management applications with WebSideStory's HBX Web analytics service to create a suite of integrated, on-demand digital marketing applications. WebSideStory's Active Marketing Suite will also include a keyword bid management product, scheduled for release this summer. The Active Marketing Suite is designed to offer a single, shared environment in which businesses can more easily optimize their online performance across multiple marketing channels, while reducing their vendor management costs. The Active Marketing Suite will have an open architecture accessible through WebSideStory's STREAM APIs (application programming interfaces), which will enable further integration of products, services and data from strategic partners and end users.

Under the terms of the agreement, WebSideStory will issue approximately 3.1 million shares of common stock and options to purchase common stock and will pay approximately $4.3 million in cash, in exchange for the outstanding capital stock and options of Atomz. Approximately 19% of the common stock and cash will be held in escrow for a fifteen-month period (with a portion extended to up to twenty-four months) following closing to satisfy possible indemnification claims. Atomz shareholders also have the right to receive an earn-out payment based on achievement of certain revenues by Atomz in the fifteen-month period following the closing. Upon completion of the transaction, Atomz will merge with and into a subsidiary of WebSideStory. Assuming consummation of the merger on April 1, 2005, WebSideStory expects Atomz to add approximately $7.8 million to its revenue for the last three quarters of the year.
(www.atomz.com; www.websidestory.com)