Google to buy ITA Software for $700 million

ITA Software, a flight information software company, and Google have signed a definitive agreement for Google to acquire ITA for $700 million in cash, subject to adjustments.

“ITA’s very talented team has created an impressive product to organize flight information,” said Eric Schmidt, Chairman and CEO of Google. “Their technology opens exciting possibilities for us to create new ways for users to more easily find flight information online, and we’re looking forward to welcoming them to Google.”

“It is a privilege to work with a most skilled and dedicated team to build innovative technologies that people use every day,” said Jeremy Wertheimer, CEO & President, ITA Software, Inc. “We are all looking forward to continuing and expanding our efforts as part of Google.”

Founded in 1996 by a team of MIT computer scientists, ITA’s technically advanced solutions for organizing flight information were hailed as a catalyst for change in the online travel industry. Its innovative algorithms and deep airline industry expertise create a customizable flight data organization tool used by both airlines and online travel agencies.

The deal will allow Google to pursue the creation of new flight search tools that will enable users to find better flight information more easily on the Internet. Google is excited about ITA’s QPX business and the opportunity to work closely with current and future customers. Google will honor all existing agreements and looks forward to adding new partners.

Location: USA, Cambridge, CA & USA, Mountain View, CA

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Other recent Google acquisitions

kgb Acquires Centroid Media, Netherlands Internet Vertical Search Specialist

kgb has acquired 100 percent of the outstanding shares of Centroid Media, the specialist Internet business best known for the people search engine and online reputation sites, Wieowie in the Netherlands, and Whoozy across other territories. Their Network also includes www.kamer.nl, www.huizenvinder.nl , www.kamerplanet.nl, www.huizenmailer.nl, www.hotelvinder.nl, www.autorunner.nl, www.cuisinio.nl.

Centroid’s real-time data analysis, spidering and data extraction technology is a strong strategic and capability fit within the growing portfolio of online information and transactional services provided by kgb and its subsidiaries.

“We are delighted to be bringing the Centroid Media team within the kgb family of businesses,” said Trevor Saadi, kgb’s Head of Online Business. “This isn’t about acquisition, but the merging of talent in the exciting frontier territory of value living enabled by advanced Internet optimization. Centroid Media is a strong strategic fit and will accelerate our commercial roll-out plans, both in terms of capabilities and territories.”

Bart Kappenburg, Founder and Chief Executive of Centroid Media, added: “I’m very pleased with this great opportunity for our technology to be rolled out internationally. This opens up the scope of delivery for our talented team in a very exciting area of innovation where things are moving quickly. Centroid has already made strong progress to advance search capability in niche-markets, like people, cars and houses. Now, with kgb, everything will expand rapidly.”

Location: USA, New York, NY & Netherlands, Groningen

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CatholicMatch.com acquires TraditionalSingleCatholics.com

CatholicMatch.com has acquired TraditionalSingleCatholics.com. the terms of the deal were not dixclosed.

TraditionalSingleCatholics.com was launched four and a half years ago to serve single Catholics with specific needs and preferences. It elicited a flood of grateful emails: “Thank goodness you’re there. It’s so nice to go to a place where you don’t have to explain yourself and everybody’s on the same page.” Others wrote: “Sometimes you feel like you’re out there all alone, and this site provided a much-needed source of support.”

The staff of TraditionalSingleCatholics.com has told its members that they’ll be in good hands at CatholicMatch. “They’ll have access to so many more services than we could ever provide: 38 forums, three live chats, a sophisticated in-line instant message system, a temperament test and the largest community of Catholic singles online.”

CatholicMatch.com acquired CatholicDaters.com in 2007 and SingleCatholics.com in 2008.

Location: USA, Pittsburgh, PA

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EA Technology Ventures has appointed Stuart Thompson as managing director

EA Technology Ventures has appointed Stuart Thompson as managing director. EA technology Ventures is a specialist company which works with businesses and investors from the clean and new energy sector to take innovative ideas to market. It is a subsidiary of the EA Technology Group, which is based in England’s Northwest and has over 40 years’ of research and development in the electricity industry.

Stuart brings together a wealth of experience from the engineering, electricity and telecommunications sectors, and has worked alongside several of the world’s leading solutions providers in the development of high specification telecom and data networks.

In his previous role, as Head of Business Development at EA Technology Consulting, Stuart was instrumental in increasing the revenues of the business by over 100%.

Stuart is on the committees of the Institute of Asset Management and the Institute of Engineering and Technology. He is a Chartered Marketer with an MBA and is also a member of the Institute of Directors.

Location: UK, Chester

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Local.com acquires the assets of local domain advertising company OCTANE360

Local.com Corporation, a local search site and network, has acquired the assets of OCTANE360, a technology startup providing domain-based local advertising solutions to small businesses, domain portfolio owners, agencies and channel partners.

Under the terms of the agreement, Local.com acquired the assets of OCTANE360 for $5 million in cash and stock with an earnout of up to $5.9 million if certain performance criteria are met in the two-year period following the closing. Founded in 2008 and based in Los Angeles, California, OCTANE360 will become a wholly-owned division of Local.com.

“This transaction represents a significant expansion of Local.com’s product suite and technology platform, allowing us to manage the scaled acquisition, creation and deployment of geo-category targeted small business domains,” said Heath Clarke, Local.com chairman and CEO. “Furthermore, Octane Experts’ content marketplace allows for the scaled procurement of proprietary, curated content, thereby enhancing the SEO value of local domains under our management.”

Local.com anticipates that the deployment of content across proprietary geo-category local domains will result in an increase in organic O&O traffic, a strategic objective of the company. The company also expects that the OCTANE360 product suite will open the domain portfolio industry as a potentially valuable new market for the Local.com network. OCTANE360 currently generates revenues from various ad formats including subscription advertising, performance and display ad units.

“We are excited to join forces with Local.com,” said Rioux. “We feel that our combined assets of platform, products, services, reach and relationships create a compelling offering to serve the growing local search market. We look forward to becoming part of the Local.com team while quickly ramping our business.”

CREDIT FACILITY

The company has also opened a $30 million revolving credit facility with Silicon Valley Bank. The facility, which is secured by all of the company’s assets, is expected to be used primarily for general working capital and to fund strategic growth initiatives.

Location: USA, Irvine, CA

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Morningstar Europe acquires the remaining ownership interest in Morningstar Danmark

Morningstar Europe, a subsidiary of Morningstar Inc., a provider of independent investment research, has completed the previously reported acquisition of a 75 percent ownership interest in Morningstar Danmark A/S from Phosphorus A/S, bringing its ownership to 100 percent. Morningstar paid Phosphorus U.S. $15.2 million, or approximately DKK 91 million, plus an amount for its share of first-half 2010 net profits.

Located in Copenhagen, Morningstar Danmark was established in 2001 by Morningstar Europe and Phosphorus, a Danish company. Peter Meyer, chief executive officer, and Torben Bruun, chief operating officer, will continue to lead the company.

Location: USA, Chicago,IL & Denmark, Copenhagen

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Morningstar France acquires Seeds Group, including Seeds Finance and Multiratings

Morningstar France Holding, a subsidiary of Morningstar, Inc., the provider of independent investment research, has completed its previously announced acquisition of Seeds Group, a provider of investment consulting services and fund research in France. Terms were not disclosed.

Seeds Group was founded in 2002 and, through its subsidiary Seeds Finance, provides investment consulting services to pension funds, insurance companies, asset managers, banks, and brokerage firms. In addition to investment consulting, Seeds Group also operates Multiratings.com, a fund research and investment education website for advisor groups and institutions.

Seeds Group and its affiliates have 12 employees based in Paris. The company will become a subsidiary of Morningstar France.

Location: USA, Chicago,IL & France, Paris

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Related DigiNet Articles

Infrax Systems acquires Trimax Wireless

Infrax Systems, a global provider of unified Smart Grid-related products and services for the Energy and Utility industries, today announced the completion of the acquisition of Trimax Wireless, a privately-held, leading edge designer, developer and manufacturer of advanced carrier-grade broadband wireless equipment and other innovative technologies.

“The acquisition of Trimax is a critical step in the growth of Infrax Systems,” states INFRAX CEO, Paul Aiello. “TRIMAX is the perfect complement to INFRAX Systems, giving us greater capabilities, industry position, a clear competitive advantage and additional revenue streams. Their innovative technology integration is core to solving the connectivity issues that arise from the deployment of thousand of intelligent devices along the electrical grid. We are pleased to welcome Trimax to the Infrax family.”

The acquisition was made in accordance to an earlier announcement, for approximately US$10M in a combination of cash and Preferred stock. Trimax had over $1.2M in broadband revenues in 2009 and the combined Company is projecting $6M for the current fiscal year. In addition to their core wireless broadband product offering, the multi-protocol hardware developed and manufactured by Trimax, will provide utilities with a cost effective, robust and very reliable last mile two-way communications solution for upgrading older meters and enhancing the newer ones.

Smart meter penetration in the U.S. is expected to grow to 13.6 million units by the end of this year and more than 33 million units by 2011. Global deployments are expected to exceed 212 million units or $46B by 2014.

Location: USA, St. Petersburg, CA

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Amazon acquires online retailer Woot.com

Amazon is to acquire Woot.com, an Internet retailer based in Texas. It was founded by electronics wholesaler Matt Rutledge and debuted on July 12, 2004. Woot’s main website generally offers only one discounted product each day, often a piece of computer hardware or an electronic gadget. The terms of the deal were not disclosed. Woot HQ will remain in Carrollton, Texas, and will operate as autonomously as other Amazon companies like Zappos and Audible.

Woot had plenty to say about the acquisition. See below.

Location: USA, Carrollton, TX

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The US M&A Market Heats Up

According to a report from The Jordan, Edmiston Group, the M&A market for media, information, marketing services, education and related technologies in the USA rebounded strongly in the first half of 2010, led by digital and technology‐driven businesses. 445 transactions with a total value of $21 billion were announced, reflecting a 52% increase in deal volume and a 291% surge in deal value over 1H 2009 levels.

Overall, six market sectors saw strong growth in M&A in the first half: B2B Online Media (number of deals up nearly 4x), B2C Online Media (+64%), Business‐to‐Business Media (up nearly 4x), Database & Information Services (+90%), Marketing & Interactive Services (+96%), and Mobile Media & Technology (+188%).

For more information see the Press Release.

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