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Omniture is at it again, this time set to buy Visual Sciences. Visual Sciences is known as the product which provides the deepest segmentation and analysis of any of the analytics vendors. This acquisition will give Omniture an even greater market-share in the web analytics space. It will be interesting to see the pricing model and the integration of Visual Sciences with Omniture’s suite of tools. I really like Gary Angel’s thoughts on this news.
Omniture Inc. (NASDAQ: OMTR), today announced a definitive agreement to acquire Visual Sciences, Inc. (NASDAQ: VSCN) in a stock and cash transaction valued at approximately $394 million.
The combination of Omniture and Visual Sciences creates a company with substantial scale and resources to deliver industry leading products and services that address the rapidly expanding online business optimization market. The combined company will be able to accelerate investments, meet a wider set of customer needs through a richer solution set and have a significantly greater opportunity to grow into new markets.
“With the tremendous growth opportunities we see in the online optimization
market, we believe that in addition to being financially accretive to our
shareholders, this is a strategic investment that will drive increased value for
customers and partners,” said Josh James, CEO and co-founder of Omniture. “We
are facing a very significant opportunity defined by the rapid growth of online
advertising and online business in general. This acquisition enables Omniture to
accelerate our investments in advanced solutions that drive customer success as
well as create further opportunities to cross-sell our growing portfolio of
products to a combined customer base of more than 4,000 customers.”
Under the terms of the agreement, Visual Sciences shareholders will receive $2.39 in cash per share and a fixed exchange ratio of 0.49 shares of Omniture stock for each Visual Sciences share, on a fully diluted basis. Based upon Omniture’s closing price on Wednesday, October 24, 2007, this yields a total consideration of $18.04 per share. Upon the close of the transaction, Visual Sciences stockholders will own approximately 13.7 percent of the combined company on a pro forma basis.
“Omniture is a leader in online business optimization, and absolutely the right
company to leverage our technology and resources for the benefit of the
industry. The combined company will provide our customers with a richer solution
set, faster innovation and greater access to unique industry and business
expertise,” said Jim MacIntyre, CEO of Visual Sciences. “We look forward to
bringing these two great teams together.”
The acquisition, which is expected to close in early to mid 2008, is subject to customary closing conditions, including approval of stockholders of both companies and regulatory approvals. The transaction will be accounted for under purchase accounting rules.
