Omniture Inc., the Orem-based maker of software that tests the effectiveness of retailers' Web sites, has agreed to buy Offermatica Corp. for $65 million to add technology enabling stores to automate changes in their online sales.
Offermatica's software lets Web retailers alternate specific features and special offers to see which ones make consumers buy more. It complements Omniture, whose technology gathers data on marketing tactics.
"The real opportunity is to sell their product into our customer channel," Omniture Chief Executive Officer Joshua James, 34, said in an interview Friday. "They just didn't have the sales force for the opportunity."
Closely held Offermatica, based in San Francisco, was expected to double its 2006 sales of $5.5 million this year and make a profit by the end of the year, James said. Offermatica's gross profit margin is similar to Omniture's, he said. Omniture had a gross margin of 62 percent in the first half.
Omniture said it will pay $30 million in cash and $35 million in Omniture stock. The deal will close in the fourth quarter.
Omniture shares fell 53 cents to $24.45 at 10:56 a.m. New York time in Nasdaq Stock Market trading. They had jumped 77 percent this year before today. The shares more than tripled since their June 2006 initial public offering at $6.50 apiece.
Offermatica has 100 clients, including Intuit Inc., T-Mobile and Williams-Sonoma Inc., Omniture said. About half of them use Omniture's service, James said. Omniture has about 2,500 clients.
Omniture could have $1 billion in annual sales by 2012 or 2013, RBC Capital Markets analyst Robert Breza said in a Sept. 5 note to clients. The Offermatica deal is a complementary acquisition at a reasonable price, Breza said in a note Friday.
Omniture's revenue may gain 77 percent to $141.2 million this year, according to the mean estimate of 21 analysts compiled by Bloomberg, not counting any contribution from Offermatica.