Google Acquisitions: Sometimes it is difficult to understand why a particular company is acquiring another. This may be the case with Google Inc (NASDAQ:GOOG)’s most recent purchase.
It is being reported by Reuters that the search engine giant is going to purchase a portion of ICG Group Inc., more specifically its marketing services unit known as Channel Intelligence Inc.
With a deal expected to be closed with $125 million in cash, it is safe to say that Google Inc (NASDAQ:GOOG) has a reason for the acquisition.
While it is hard to say exactly what Google plans to do with its new acquisition, it appears that Channel Intelligence Inc’s services align nicely with those of the search engine leader.
Here is what the Reuters article added:
“Channel Intelligence helps retailers, manufacturers and other advertisers make their products and services easier for consumers to find and buy online and in local stores.”
The acquisition is not complete yet, but the same article goes on to explain that the deal is set to be finalized sometime during the first quarter of 2013.
If you want to learn more about this deal from the ICG Group Inc. side of the tracks, here is some information for you:
“ICG said it will get $60.5 million for its stake in Channel Intelligence.”
“ICG shares, which closed at $12.04 on Tuesday on the Nasdaq, were up 3 percent at $12.41 in premarket trading on Wednesday morning.”
Here is what Doug Alexander, CEO of CI and President of ICG had to say in a blog post on the company’s website:
“Building upon the perseverance and strong foundation laid by CI’s founder Rob Wight, I am extremely proud of the work we accomplished at CI. With the talent and hard work of the entire CI team, we successfully navigated a very complex marketplace, ending a record year that culminated in this very exciting acquisition.”
What are your thoughts on this acquisition by Google Inc (NASDAQ:GOOG)?
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DISCLOSURE: I have no positions in any stock mentioned.
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