Internet service provider EarthWeb Inc has acquired MicroHouse International Inc, a provider of subscription-based electronic reference libraries for IT professionals. Under the terms of the deal, EarthWeb will hand over approximately $9.0m in common stock, a convertible note and cash. MicroHouse’s electronic libraries include information on networking, hardware and applications. The company boasts more than 8,500 subscribers, who currently pay between $400 and $1,200 annually for its services. It posted 1998 revenues of $3.7m.
EarthWeb says the acquisition significantly expands its own business-to-business subscription services, launched in the fourth quarter of last year, which now have 3,500 subscribers. Its main offering, ITKnowledge, contains texts of technical publishers, including IDG Books Worldwide, The Coriolis Group and Macmillan Computer Publishing, among others. EarthWeb will record a one-time charge of about $500,000 in the second quarter, relating to the issuance of employee stock options in connection with the deal.
