Inktomi Corp. has signed an agreement to acquire WebSpective Software, a leading provider of content distribution and tracking software. This will enhance its leadership position as the technology supplier of Internet infrastructure to companies worldwide.
Inktomi is a California-based company that develops and markets scalable software for the world''s largest Internet infrastructure and media companies. Inktomi's two areas of business are portal services, which comprise search directory and shopping engines; and network services, which include Traffic Server network cache and associated value-added services.
Founded in 1997, the Massachusetts-based WebSpective Software is a leading provider of content distribution and tracking software. The software helps online businesses, Internet Service Providers and Web hosts to provide timely and consistent delivery of content and applications across the Internet.
The acquisition will enable Inktomi to extend its traffic server platform and add new core technologies. These technologies will be used to provide Internet companies with the industry's first integrated software solution for content distribution, delivery and management. The acquisition of WebSpective will give Inktomi the ability to deliver a robust solution for the growing Web hosting marketplace, which is projected to reach $14.6 billion in 2003 according to Forrester Research. The Inktomi traffic server is in use at Web hosting companies like Cable & Wireless, Digital Island and Exodus.
The WebSpective software will provide Inktomi with key components for the enterprise marketplace, which Inktomi plans to enter later this year. "The acquisition today brings us closer to delivering on our vision of making Traffic Server the ubiquitous software layer across the Internet," said David Peterschmidt, president and CEO of Inktomi. "We see this software layer generating new products and value-added services to provide Internet users with smarter network applications for a range of uses both today and in the future."
"We are very excited to join the Inktomi team and get down to the business of developing powerful network infrastructure technologies," said Glenn D. House, Sr., president and CEO of WebSpective Software. "Both companies demonstrate synergies in technology, customer and people assets that, in combination, will create winning solutions for Internet service providers, Web hosters and e-commerce companies worldwide."
Inktomi will acquire 100 per cent of the outstanding stock and assume all stock options of WebSpective Software in exchange for shares of Inktomi common stock, and will account for the transaction as a pooling of interests. The deal is worth approximately $106 million. Inktomi expects the deal to close in the next quarter, subject to customary closing conditions.