Following the Yankee Group-predicted trend of consolidation in the CRM space, Aliso Viejo, Calif.-based marketing software and services firm MindArrow Systems Inc. has entered into a definitive agreement to acquire New York-based Control Commerce Inc.
Control Commerce is best known for developing "Virtual Kiosk," an e-commerce system where customers can view and respond to the marketing or promotions they see within an advertisement. Virtual Kiosk is entirely Web-based and was designed to enhance online marketing and merchandising functions, including selling products, liquidating inventory, conducting surveys, acquiring customers, and using coupons and promotions. These can all be tracked in real-time.
MindArrow plans to integrate Virtual Kiosk into its own technology. By combining what MindArrow describes as a low-friction merchandising and customer acquisition system with its enhanced e-mail software and back-end reporting, the company hopes to provide its customers with a more complete way to directly market to consumers via the Web and e-mail.
According to Control Commerce, combining the technologies increases the likelihood of customers purchasing by reducing the amount of clicks required to reach a desired destination.
In addition to the Control Commerce technology, for which the U.S. Patent Office has issued a notice of allowance, MindArrow will also acquire over $1 million in cash and engineers from the company's research and development operations.
Further details of the stock-based transaction were not disclosed. The acquisition is expected to close in the next few weeks.
MindArrow's customers include Oracle, Northwest Airlines, Accenture, Johnson & Johnson, Toyota, Ceridian, US Bank, Marriott and the NBA.
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