September 7, 2007, 12:00 AM

Omniture to buy Offermatica to marry analytics and page optimization tech

Web analytics provider Omniture will pay $65 million to acquire Offermatica, which provides on-demand technology to retailers for testing visitor response to multiple arrangements of product displays and other online content.

Don Davis

Editor in Chief

Web analytics provider Omniture Inc. will pay $65 million in cash and stock to acquire Offermatica, which provides on-demand technology to retailers for testing visitor response to multiple arrangements of product displays and other online content.

The Offermatica acquisition, expected to close in the fourth quarter, follows Omniture’s recent purchase of Touch Clarity, which also offers technology for optimizing web page content to suit customer interests. The two acquisitions address a growing demand among retailers who want to complement their web analytics data, including information on how visitors click through a web site, with tools that let merchants test visitor response to multiple arrangements of online content.

“A year ago it became very clear to us that our customers wanted to leverage their data through a range of testing and optimization tools,” says Josh James, CEO and co-founder of Omniture.

Rob Garf, vice president and general manager of retail strategies at research and advisory firm AMR Research Inc., says the combined companies would serve a need to make web pages more useful to consumers. “A powerful benefit of the web, as a direct-to-consumer channel, is the ability to provide personalized interactions and measure effectiveness,” he says. “This combination takes the industry one step further towards that reality.”

The acquisition is likely to be followed by other mergers and acquisitions among e-commerce technology vendors, he adds. “Omniture’s acquisition of Offermatica is only a glimpse into the rapid consolidation we anticipate in the e-commerce world,” Garf says.

Omniture, based in Orem, UT, will pay the stockholders of privately held Offermatica $35 million worth of Omniture common stock and $30 million in cash, Omniture says.

San Francisco-based Offermatica serves more than 100 clients, including retailers Circuit City Stores Inc., No. 17 in the Internet Retailer Top 500 Guide, Polo.com, No. 105, and Williams-Sonoma Inc., No. 20.

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