Google Inc (NASDAQ:GOOG) has acquired online retail sales tracker Channel Intelligence for $125 million in cash; the company announced the deal earlier today.
Channel Intelligence, one of ICG Groups’ companies, provides technologies that are designed to improve brand performance and to boost the sale of products online. The company offers a Facebook Inc. (NASDAQ:FB) platform, product search engines, and other services created for companies looking to improve product sales.
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“The sale of CI to Google Inc (NASDAQ:GOOG) is a testament to the quality of its technology and its strong team led by ICG President, Doug Alexander, who positioned the company to succeed in the rapidly growing e-marketing industry,” said Walter Buckley, CEO of ICG.
ICG is expected to receive $60.5 million for its stake in the company. The deal is expected to close by the end of the 2013 first quarter.
“As drivers and architects of CI’s growth and success, we are very pleased with this outcome.”
CI tracks close to 15 percent of all U.S. transactions online, which will, as a result of this deal, flow into one of Google’s strongest units ‘Google Shopping’.
On its site, CI talks about working with Google shopping and boosting traffic for retailers.
“Our vision for CI started with the desire to simplify the online shopping experience. Under the leadership of Doug and ICG, CI greatly enhanced its value proposition to its customers and partners. I am very proud to see our vision executed to this great outcome.” said Rob Wight, Founder and Chairman of CI.
Its apparent that Google is trying to improve its shopping services to prevent online shoppers from switching to Amazon.com, Inc. (NASDAQ:AMZN) for their digital shopping needs. Google, in combination with CI, aims to provide its users a better list of relevant shopping results in the future.
Here is what Google Inc (NASDAQ:GOOG) said about this deal: “We think Channel Intelligence will help create a better shopping experience for users and help merchants increase sales across the web.”