Xoom.com Inc, the online direct marketing and community web site company, has agreed to acquire LiquidMarket Inc, which runs a web-based comparison shopping service, for $45.8m in stock. Through a licensing agreement with Snap.com, the shopping guide service will be available to Snap.com users as well as to Xoom’s estimated 9.2 million members. In addition to acquiring the comparison shopping technology itself, Xoom says the deal will enable it to collect valuable data about online buyers, such as information about their preferences and purchase history. Terms of the deal call for Xoom to hand over 1.06 million shares in exchange for all of LiquidMarket’s outstanding stock.
Los Angeles-based LiquidMarket claims its shopping agent is designed to enable consumers to search for products from all major online retailers in a merchant neutral manner – meaning it reports product information on all merchants, not just those who pay commission fees. Future services will include an exchange allowing users to seek items at a desired price and to receive alerts from the shopping agent. San Francisco-based Xoom plans to make the LiquidMarket service available to its members and Snap.com users in early fall. Initial categories will be office supplies, consumer electronics and computers, with others slated to be added soon after.
