Overture completes acquisition of AltaVista business
In accordance with the terms of the acquisition agreement announced on February 18, 2003, Overture acquired the AltaVista business for $106.6 million ($60 million in cash and approximately 4.275 million shares of Overture common stock, with a value of $46.6 million based on the closing share price on April 25, 2003).
This acquisition, combined with Overture's recently completed acquisition of the Web search unit of Fast Search & Transfer (FAST), will enable Overture to offer a full-service search solution to portals, Internet Service Providers (ISPs) and other destination sites. Additionally, Overture will be able to provide its growing base of 88,000 advertisers access to new sources of distribution and products, such as paid inclusion, to drive additional targeted leads.
Overture plans to develop a common platform for its new Web search product before the end of 2003 and will continue to operate both AltaVista and FAST's search engines separately until that time.
"With the successful acquisitions of AltaVista and FAST's Web search unit, Overture is well-positioned to create the most powerful and comprehensive search capability on the Internet," said Ted Meisel, president and chief executive officer, Overture Services. "We are now stepping up our integration efforts and making appropriate investments to build the next generation of search." As part of today's announcement, Overture also made a series of management appointments related to the acquisitions:
-- Jim Barnett, formerly AltaVista's chief executive officer, will lead Overture's Web search efforts and will report to Overture's Meisel.
-- Fred Bullock, formerly AltaVista's senior vice president and chief marketing officer, will direct site management and marketing for Overture's Web search efforts and will report to Barnett.
-- John Ellis, formerly AltaVista's senior vice president of engineering and operations, will oversee those same areas for Overture's Web search efforts and will report to Barnett.
Since its founding in 1995, Internet search pioneer AltaVista has become a leading global provider of search services and technology and has also been awarded the most search-related patents in the industry. As part of the acquisition, Overture has assumed AltaVista's 58 search technology patents and other patent-pending applications.
The securities that were issued in connection with the acquisition of AltaVista have not been registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration, or an applicable exemption from the registration requirements, under the Securities Act of 1933.
Source: Business Wire