MINNEAPOLIS--June 2, 2004-- Digital River, Inc. (Nasdaq:DRIV), a global leader in e-commerce outsourcing, today announced that it has extended its e-commerce solution through the acquisition of a world-class, Web analytics service. The new service offers online merchants easy-to-use tools designed to help improve their operating results, including real-time and historical click stream analysis, path and campaign analysis, detailed merchandising reports and result comparisons to other online businesses. The service, which will be delivered as a fully integrated part of Digital River's e-commerce platform, also provides daily comparisons of online traffic, conversions, orders, revenue, abandons and site performance.
"We believe this technology acquisition will increase the depth of online site analysis that can be performed by companies using our e-commerce solution," said Joel Ronning, Digital River's CEO. "Our clients will have access to advanced analysis tools used by some of the world's leading online retailers. The comprehensive solution will give our clients the capacity to tightly integrate traffic, commerce and customer data in order to understand end-to-end shopper behavior and ultimately drive incremental revenues."
Digital River obtained the new offering through its acquisition of Fireclick, Inc., a leading provider of Web-analysis solutions for online retailers. Under the terms of the agreement, Digital River paid $7.5 million in cash. The agreement also provides Fireclick the opportunity for an earn-out based on Digital River achieving certain revenue and profitability targets attributable to Fireclick over the course of the three years following the closing of the acquisition. Digital River expects the acquisition to be accretive to earnings in the near term. Other terms of the transaction were not disclosed.
The Fireclick business will continue to operate out of its current location in Mountain View, California, delivering its technology not only as a fully integrated part of Digital River's e-commerce suite, but also on a stand-alone basis. The combined strengths of the companies offer benefits to the clients of Digital River and Fireclick as well as the larger marketplace.
"This acquisition is consistent with our commitment to deliver a superior end-to-end e-commerce solution," said Ronning. "By combining Fireclick's industry-leading analytics system, integrated data warehousing capabilities and sophisticated analytics reporting with Digital River's world-class e-commerce suite, we believe our combined organizations can offer the market one of the most comprehensive suites of e-commerce, e-marketing and analytics services. We look forward to working with Fireclick and its clients to enhance our e-commerce service suite and expand our presence among online retailers."
"By becoming part of an established, profitable, publicly-traded company, we believe we can deliver even more benefits and growth opportunities for our clients' online businesses," said Ram Srinivasan, Fireclick's president and CEO. "As a result of the acquisition, Fireclick customers now will have access to a single vendor solution for a comprehensive range of e-commerce needs. In the meantime, we will continue to provide them the same level of service and innovation that they have come to expect, including updates, enhancements and customer support."
Fireclick is already assisting over 300 Web sites of all sizes and in diverse industries to improve their operating performance and achieve online success. Current customers include leading retailers, such as Lillian Vernon, Guess, RadioShack, Skechers, Ann Taylor, Patagonia and Venus Swimwear.
About Fireclick
Based in Mountain View, CA, Digital River's Fireclick division provides a comprehensive yet easy-to-use Web analytics solution that enables online businesses to improve overall operating results. By providing e-businesses with real-time actionable information about their customers, the Fireclick application service helps create a better experience for site visitors. Online businesses are rewarded with more site traffic, increased revenue and greater profit. Visit Fireclick's Web site at www.fireclick.com.
About Digital River, Inc.
Digital River, Inc., a global leader in e-commerce outsourcing, builds and manages online businesses for nearly 35,000 companies worldwide. Its e-commerce solution and infrastructure are designed to help companies of all sizes maximize online revenues as well as cut the costs and reduce the risks associated with running an e-commerce operation. The Digital River(R) international e-commerce suite includes site development and hosting, order management, fraud prevention, site merchandising, reporting and analytics, product fulfillment, e-marketing and multi-lingual customer service. Digital River's clients include 3M, ACT!, Autodesk, H&R Block, Motorola, Novell, Staples.com and Symantec.
Founded in 1994, Digital River is headquartered in Minneapolis with offices throughout the United States and in Europe. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.
