WebSideStory Acquires Atomz

Hosted web analytics vendor WebSideStory has acquired Atomz in a deal that cements the latter's move towards e-marketing solutions. WebSideStory focuses on analytics and (soon) pay-per-click bid management; with Atomz, it adds web search and CMS. Prospective buyers should note that both companies still need to work hard to integrate all these tools, though this should be easier for hosted vendors, who have only one platform to support. As arguably the marketshare leader in both hosted search and hosted web content management, Atomz probably could have maintained a nice growth curve on its own, but as a venture-financed firm (Atomz took in almost $20M in investment over two rounds), the company was probably under strong investor pressure to "exit." Existing Atomz customers should take comfort that key company execs are "locked up" from cashing out for at least 15 months...

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