NEW YORK Atlas DMT said that it has acquired NetConversions, a company that provides Web site usability and optimization technology and services, in a deal that could amount to $7 million.
As a part of the buyout, Atlas DMT paid NetConversions $4.5 million in cash, and could dole out up to an additional $2.5 million over the next two years based on NetConversions meeting certain profitability goals.
This is the second purchase for Atlas DMT in less than two months. In December, the ad technology division of Seattle-based aQuantive bought Go Toast, a Denver company that provides paid-search management and optimization tools, in a cash and stock transaction.
NetConversions, a 5-year-old, Seattle-based privately held company that posted 2003 revenue of $1-2 million, delivers data-driven analysis and recommendations for Web sites that belong to clients like Verizon, Office Depot and Priceline. It will operate as Atlas NetConversions and a complementary offering to Atlas Vital Signs, a Web site analytics and metrics technology that gives advertisers information on customer behavior and campaign performance.
"Atlas Vital Signs has been an important tool for evaluating the overall health of a Web site, but now with NetConversions technology and services, Atlas DMT is not only able to diagnose where within a site consumers drop out of the purchase process, but identify exactly what elements need to be changed to improve conversion rates," said Atlas DMT chief operating officer Ona Karas.
The acquisition is expected to add about 1 cent per share to aQuantive's earnings this year, which had been anticipated and included in the company's previous guidance. Last year, the company forecasted 2004 revenue of $88-98 million and net income of 28-33 cents per basic share, or 24-28 cents per diluted share.
Aquantive stock (AQNT) closed on the Nasdaq today at $10.32, down 13 cents or 1 percent. Its 52-week high is $13.55; its low, $2.80.