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WebSideStory Acquires Atomz, Founded by Former Macromedia Execs

Sale is Completed, Active Marketing Suite Launched

WebSideStory is integrating its on-demand digital marketing applications with the search and on-demand site search capabilities of Atomz, the acquisition of which it has now completed. Under the terms of the deal, WebSideStory acquired all of the outstanding capital stock and options of Atomz in exchange for approximately 3.1 million shares of common stock and approximately $4.3 million in cash.

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. Atomz will retain its offices near San Francisco and operate as a subsidiary of WebSideStory.

WebSideStory first announced its intention to acquire Atomz on Feb. 8, 2005. At the time of the announcement, WebSideStory also announced the launch of its Active Marketing Suite, which will be the industry's first line of integrated, on-demand digital marketing services and applications. The Active Marketing Suite gives marketers a single, shared environment in which to optimize their online performance across multiple marketing channels. The suite includes:

  • HBX Analytics, an award-winning, on-demand web analytics service
  • Bid, an on-demand keyword bid management product due for release this summer
  • Search, an on-demand web site search application
  • Content Manager, an on-demand web site content management service.

Atomz was founded in 1998 by former executives from Macromedia, including Steve Kusmer, who served at Atomz' CEO. Kusmer will become senior vice president and general manager of the WebSideStory Search and Content Solutions business unit.

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