Online marketing company FindWhat will acquire EC platform provider Miva

FindWhat.com, developer and provider of performance-based marketing services for the Internet, will acquire privately-owned Miva Corp., supplier of e-commerce software and services to small and medium-sized businesses, for $5.5 million plus the assumption of approximately $2.5 million in notes and other liabilities, FindWhat announced today.

As of June, Miva, founded in 1996, had a base of over 70,000 registered users of its flagship Miva Merchant product, with over 85,000 storefront registrations. Over the last 24 months, it has added 2,000 new merchant registrations per month.

“FindWhat.com is focused on the needs of the small-to-medium sized business,” said Craig Pisaris-Henderson, chairman and CEO of FindWhat.com. “Miva Merchant can be a valuable addition to our service offering—we help SMEs promote their online business, and, under this proposed transaction, we also will help them to create and manage their online business. This is a first step toward our goal of expanding our capabilities so that we can help online merchants find, get and keep customers—the complete equation that breeds success for any business. In addition, we believe this combination can provide more opportunities to Miva’s hosting partners.” Miva reports that it sells to the majority of US hosting companies, and has signed up more than 1,100 hosting, technology and value-added distribution partners.

Miva shareholders will receive $2.7 million in cash and $2.7 million in FindWhat.com common stock. The number of shares of FindWhat.com stock to be issued is to be based on FindWhat.com’s average closing stock price prior to the consummation of the merger; however, FindWhat.com will not issue fewer than 94,310 shares or more than 182,333 shares to Miva’s shareholders.

Miva recorded revenue of $2.6 million in 2002 and $1 million in the first six months of 2003. Miva had a GAAP net loss of $800,000 in 2002 and $400,000 in the first six months of 2003.