Keynote Systems Inc. has agreed to buy Web-based customer research vendor Vividence Corp.
Keynote, which provides services for monitoring the performance of Web sites, announced on Friday that it will buy Vividence for $20 million in cash in a transaction expected to close within 30 days. Another $6 million could be paid by Sept. 30, 2005, based on achievement targets.
Keynote, of San Mateo, Calif., will acquire Vividences more than 130 active customers as well its 50 employees. Among Vividences customers are such companies as Citibank N.A., FedEx Corp., Microsoft Corp. and Williams-Sonoma Inc.
The acquisition will help bolster Keynotes offerings in what it calls “customer experience management.” Keynote already has acquired two other companies in the space—Enviz Inc. in October 2002 and NetRaker Corp. earlier this year.
Vividences products will be integrated into Keynotes WebEffective Intelligence Platform for managing the operational and business aspects of e-business sites, Keynote officials said.
Keynote expects the acquisition to increase its fiscal 2005 revenue by between $11 million and $14 million.
San Mateo, Calif.-based Vividence was founded in 1998 and backed by venture capitalists Kleiner Perkins Caufield & Byers, Sequoia Capital and Partech International Inc.