Google To Acquire Channel Intelligence In $125 Million Deal
Channel Intelligence, an ICG Group subsidiary and provider of technology to ecommerce-enabled companies, said Wednesday that Google intends to acquire the company for $125 million in an all-cash deal.
In an 8-K filing with the Securities and Exchange Commission, ICG estimates gains related to the 2012 consolidation of CI's parent company and the sale of its stake to Google at $43 million -- approximately $26 million of which was recorded in the three months ended September 30, 2012. Approximately $17 million of that will be recorded on the closing of the transaction.
ICG should realize $60.5 million in connection with the transaction, which should close during the first quarter of 2013.
In June 2012, CI announced executive changes. Rob Wight, founder and CEO of CI, stepped in as chairman of the board and chief software architect. Doug Alexander, president of ICG, would serve as CEO. The transition was intended to support a growth spurt the company experienced at the time.
For brands and manufacturers, CI manages more than 80% of all "Where to Buy links" on Web sites, search, blogs and display ads. The company supports brands that sell through Google's services, like Google Shopping, claiming its PLA clients had 466% year-over-year sales growth in the first quarter of 2012.