DemandTec is acquiring Connect3 Systems, a privately-held firm that sells advertising, merchandising and promotions software.

"This acquisition is a powerful step towards fulfilling our vision of retailer and manufacturer collaboration in the cloud" — a slang expression for web-hosted services, stated CEO/President Dan Fishbac of DemandTec.

He said the integration would enable online retailers to better track "shopper insight" and "plan, optimize, and execute more targeted promotions across multiple channels and media such as print, internet, mobile devices, and more."

Connect3's software will be packaged into DemandTec's End-to-End Promotion Management suite. Its clients have included Best Buy, Home Depot, Office Depot and ACE Hardware.

DemandTec — which provides optimization tools for retailers and product manufacturers — paid in cash for the transaction. Other financial details were undisclosed. The buy is expected to finalize during DemandTec's fiscal quarter ending February 28.