Information solutions company Experian today announced that it acquired internet market intelligence firm Hitwise for approximately $240 million. The transaction, which is subject to regulatory approval, will be funded from Experian's cash resources and is expected to close in May, the company said.

"We have been…repositioning our Marketing Solutions business to meet our clients' needs as they continue to switch more of their advertising spend online. Hitwise…brings new, unique data to Experian and complements the existing data, tools and expertise that we already offer to clients in other areas such as research services and email distribution," said Experian CEO Don Robert in a statement.

Companies are shifting from mass marketing via established media, such as direct mail, to more targeted marketing through many more channels, including email, internet and mobile devices, Experian said.

"We will now be able to accelerate Hitwise's growth and profitability through access to Experian's wider pool of data, tools and clients, while more quickly expanding our global footprint," said Hitwise CEO Andrew Walsh.

Hitwise, which has been acquired from its original backers and management, will form part of Experian Marketing Solutions. Hitwise has over 200 employees, based mainly in Melbourne, New York and London.
 
In addition to complement Experian's market research, Hitwise offers other services that are complementary to Experian products; it will, for example, leverage the sales and distribution network of CheetahMail, Experian's email delivery and analytics company, Experian said.

Hitwise cooperates with MarketingVOX's parent company, Watershed Publishing LLC, to provide some data for its new MarketingCharts.com marketing data trade publication.

Founded in 1998, Hitwise collects and aggregates information from internet service providers (ISPs) on how over 25 million consumers use and search the internet in the U.S., U.K., Australia and other countries in Asia Pacific.
Hitwise generates 43% of its sales in the U.S., 36% in the U.K. and 21% in Australia and Asia Pacific.

In the 12 months ended March 31, 2007, Hitwise is expected to have generated sales of approximately $40 million (a year-over-year increase of about 50 percent) and a small profit. Experian expects Hitwise to grow sales more than 40 percent for the 12 months ending March 31, 2008 and to generate EBIT (before amortization of acquisition intangibles) of $12-15 million.