Kana Communications Inc said Monday it has acquired two privately-held software companies – Business Evolution Inc and Net Dialog Inc – for a combined $230m in stock. Redwood City, California-based Kana, which makes software for business users to manage customer email more efficiently, said the two deals will bolster its comprehensive online customer communications offerings and extend its critical mass with over 100 new employees.
BEI, based in Princeton, New Jersey, supplies web-based customer assistance and support software that enables users to initiate real-time two-way communication with corporate web sites. Its product will be marketed as Kana Realtime. San Mateo, California- based NetDialog, meanwhile, provides self-service customer care software that delivers answers to customer questions, which will be sold under the name Kana Assist.
In connection with the acquisition of BEI, Kana will issue approximately 968,000 shares of its common stock, valued at roughly $140m, in exchange for all outstanding shares, warrants and options of BEI. NetDialog will be issued about 622,000 Kana shares, valued at close to $90m. Both transactions will be accounted for as poolings of interests.
Kana reckons that the ability to engage customers in ongoing and relevant communication is critical in improving the number of finished sales on the web. The company points to research that says about 75% of online shoppers abandon their shopping carts before completing a purchase. With the two acquisitions, Kana says it can enable e-businesses to stay in touch with their customers throughout the entire online marketing, sales, and service process.
