• by Laurie Sullivan  @lauriesullivan, January 12, 2010

Covario on Tuesday reported that it had acquired Netconcepts, based in Madison, Wis., for an undisclosed sum. The deal adds search engine optimization (SEO) to its analytics, paid search services and software biz.

The combined companies will operate under the name Covario Inc., headquartered in San Diego, Calif. Netconcepts' applications and technology, such as the company's remediation software, will be integrated into Covario's product line. The Netconcepts name will disappear.

Aside from the technology, Covario gains instant access to retail and ecommerce companies such as Cabela's, Northern Tool, Ann Taylor, Deckers, Woolrich, and Builder's Square. It also gains clients in advertising and marketing -- a market segment that Covario has been looking to build, according to Russ Mann, Covario chief executive officer.

Netconcepts' relationships with several interactive and holding group agencies, such as Performics, should help Covario build out its customer base into other market segments. Corvario also plans to expand from search into other media, such as display and social, an announcement Mann plans to make at the end of the month.

Forrester Research estimates that marketers spent about $2.5 billion on SEO in the U.S. in 2009, reaching $5 billion by 2014.

Technology from the combined companies should "complement" other landing page or content management systems. Mann explains it will provide a "lightweight" system that focuses on SEO traffic, so it doesn't bump up against or replace other systems.

The technology should not compete with Google Web site Optimizer, or Omniture's Test and Target, Mann says. In fact, it should help SEOs make other solutions more valuable by adding an extra piece to the mix of technology they can offer to drive efficiencies.

At the end of the day, it's all about giving customers what they need. The company bought Netconcepts because clients wanted better SEO remediation. "Recommendations were great, but they weren't getting implemented," he says.

Mann says to expect more consolidation across Internet marketing, with some companies going through initial public offerings (IPOs). When asked if Corvario plans to make additional acquisitions this year, he says: "It's not part of a plan. We're more opportunistic, but anything is possible."