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WESTMINSTER -- MatchLogic's merger with Excite Inc. "will change the dynamics of the advertising business on the Internet," according to Excite Senior Vice President and Co-founder Joe Kraus.
Excite, based in Redwood City, Calif., purchased MatchLogic in an exchange of common stock worth $89 million. MatchLogic had revenues of $4 million in 1996, its first year of operation and is expected to earn $21 million for Excite this year.
MatchLogic provides advertising on 2,500 Internet sites through five data centers in the United States and Europe. The company claims 500 million "advertising impressions" on behalf of customers that include General Motors, AT&T and several leading national advertising agencies.
Advertising 'hits'
The company keeps track of its advertising "hits" via its own software, TrueCount, that tracks and manages ads. MatchLogic will operate independently after the merger.
"We help online advertisers deliver the right ad, to the right person, with the right offer, at the right time, and to know within seconds whether the ad was effective," said Pete Estler, president and chief executive officer of MatchLogic. "The combined leverage of this merger will provide the best relationship management services, with the combined highest reach, across the Internet."
To house its burgeoning business, Louisville-based MatchLogic bought a new building in April at Church Ranch Corporate Center in Westminster. The facility is a converted warehouse that will feature a "California look," with an open atmosphere. MatchLogic has 120 employees, and Excite has 510, including the MatchLogic contingent. Nearly all of MatchLogic's employees are located in Boulder County. The company has a New York office of about 13 people.
Underneath the high-tech terminology and glitz of Internet advertising, the basic principles that have allowed MatchLogic to grow so rapidly are as old as the bulk mail permit. Traditional Internet advertising -- if a medium only a few years old can be said to...