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Keynote Systems, provider of web site performance management services, has agreed to acquire Vividence, provider of web-based customer experience research.
Keynote Systems, provider of web site performance management services, has agreed to acquire Vividence Corp., a provider web-based customer research that helps companies understand how to improve the online customer experience, as well as reports market trends and industry strategies.
It is Keynote’s third acquisition of a customer-experience-management company, following acquisitions of Enviz in October 2002 and NetRaker in April. “Unlike traditional market research firms, Vividence combines technology, research and consulting to provide new ways of understanding online customers, competitors and markets,” Keynote said in its announcement.
With the acquisition, Keynote acquires more than 130 active customers and access to more than 250 companies that have ever purchased services from Vividence. Vividence’s customers include eBay, Williams-Sonoma, Timberland, FedEx, Microsoft, Citibank, Clear Channel Entertainment, USA Today, and Yahoo!
Keynote says the acquisition will increase revenue and customer base for its WebEffective Intelligence Platform, which manages online customer interactions. The platform measures, tests and suggests improvements to e-business performance by combining online market research, usability analysis and web analytics.
Further, the company says, by integrating Vividence’s offerings into a single unified WebEffective Intelligence Platform, the acquisition will help expand the functionality and range of Keynote’s customer experience management portfolio of services, including syndicated research and benchmarking capabilities.
Keynote will pay approximately $20 million in cash at closing. Keynote will pay up to an additional $6 million upon achievement of certain targets by Sept. 30, 2005. The company says that for fiscal year 2005, the acquisition is expected to result in $11 million to $14 million in additional revenue for Keynote.