Internet search firm Ask Jeeves Inc. will acquire Interactive Search Holdings, the owner of My Web Search, iWon, Excite and MaxOnline, for $343 million.
Of that price, $150 million will be in cash and the rest in stock and options. In addition, Ask Jeeves may pay up to $17.5 million based on performance.
Ask Jeeves hopes to “combine its strengths “in user experience, search technology and brand development with Interactive Search Holdings’ strengths in distribution and direct marketing,” said CEO Steve Berkowitz in a statement.
And the purchase is expected to be “highly accretive,” added Steve Sordello, CFO of Ask Jeeves. “We are increasing the scale of our business in terms of revenue, earnings and market position.”
Meanwhile, Ask Jeeves upgraded its first-quarter projection. It now anticipates revenue of $37 million for the quarter and $148 million for the year.
