Accrue Software Inc has acquired fellow web analysis software house MarketWave Corp for $70m in stock, based on the previous day’s closing price. The main reason for Accrue buying MarketWave is that the latter’s software runs on Windows NT, while Accrue’s is a Solaris-based system. And from MarketWave’s perspective, it brings the benefits of a nationwide sales force, says Steve Podradchick, founder and CEO of MarketWave. There’s not a great deal of overlap in customers because of the two different platforms that the respective products run on, he says. Accrue is issuing 3.5 million new shares to pay for the acquisition. Its shares closed at $20 on Tuesday.
MarketWave is the developer of the HitList series web mining and log analysis software. It brings customers such as Citibank, Broadcast.com, Compaq, Dell and IBM to the newly enlarged Accrue, which says it will have more than 300 customers in all once the deal is completed, which is expected to be later this month. Accrue’s flagship product is Accrue Insight, and the company yesterday began shipping version 3.0 of Insight for Oracle running on Solaris.
Accrue has 12 regional sales people around the country, while MarketWave has most if its based in its Seattle headquarters, although it has recently opened offices in Los Angeles and London. There may be a few lay-offs where obvious overlaps occur, but the deal is not a cost-cutting exercise says Podradchick. MarketWave will be run as an independent subsidiary, retaining its own name. Podradchick will join the board, but will not stay on day-to-day in the long term because he has a lot of his net worth tied up in MarketWave’s stock.
