Google (NASDAQ:GOOGL) acquired Channel Intelligence -- an online marketing service -- for $125 million in cash on Wednesday. As one of ICG Group's (NASDAQ:ACTA) consolidated companies, Channel Intelligence has helped companies from Target to Best Buy drive $2 billion in online sales annually, through its product search engine, where-to-buy, and Facebook Platform technologies. The company also tracks around 15% of U.S. transactions online. All in all, the acquisition is expected to help merchants and users sell and buy on Google Shopping.
In return, the ICG Group will receive $125 million in cash. When the deal is completed in the first quarter of 2013, the company will receive around $60.5 million.
CEO of ICG Walter Buckley said of the transaction:
The sale of CI to Google is a testament to the quality of its technology and its strong team led by ICG President, Doug Alexander, who positioned the company to succeed in the rapidly growing e-marketing industry....As drivers and architects of CI's growth and success, we are very pleased with this outcome.
Fool contributor Kevin Chen has no position in any stocks mentioned. You can follow him at @TMFKang or on Google+. The Motley Fool recommends Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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