Microsoft to acquire price comparison site Ciao's parent, Greenfield Online

29 August 2008

Microsoft saysd it is acquiring Greenfield Online, which owns European shopping and price comparison website Ciao GmbH, one of Europe's leading price comparison, shopping and consumer reviews sites, to strengthen Microsoft's search and e-commerce services in Europe, in an all-cash $486-million deal.

Under the terms of the agreement, Microsoft will commence a cash tender offer to purchase all of the outstanding shares of Greenfield Online for $17.50 per share and hopes to complete the deal in the fourth quarter.

Upon close of the agreement, Ciao's technology platform, online community and extensive merchant relationships will be integrated within the Live Search platform  and Rajat Taneja, general manager for worldwide commercial search at Microsoft will now look after Ciao.

Microsoft will split up Greenfield Online and sell off the internet survey business that Greenfield owns, for which it claims to have found a buyer.

In June a consortium led by private equity fund Quadrangle Group made a definitive offer acquiring Greenfield at $15.50 a share for $426 million. Greenfield set Quadrangle an August 29 deadline to top Microsoft's $17.50 offer, failing which Greenfield would be entitled to end the deal.

Greenfield will now pay Quadrangle a $5 million termiantion fee.