peHub
By Deborah Gage
If they or a friend or family member have had a medical problem that you help solve, your chance of getting funding may improve, according to a video made recently by the National Venture Capital Association.
This was not the point of the video — the NVCA made it to highlight innovation created by venture capitalists in light of the threatened regulation of their funds by Congress. But VCs' experience with healthcare problems does influence their funding decisions, according to what they said on-screen.
Kate Mitchell of Scale VP, for example, backed a company that made catheters to zip-close vericose veins because her family has a history of diabetes. "The fact that we took something that was a nutty professor idea and made it accessible to my mother and her friends, and are really solving a problem out there, is pretty exciting," she said.
Bill Draper of Sutter Hill Ventures backed a company that developed a test for prostate cancer, which he got (although it's not clear if he got the disease before or after his investment).
Pitch Johnson of Asset Management Company has gone for drug companies, he said.
You can't be too direct with this approach, since VCs' and everybody else's medical histories are supposed to be protected by privacy laws, but the idea that funders might be more familiar with certain diseases is worth keeping in mind if you're looking for money.
VentureWire
By Lorie Konish
Pharmaceutical company Zogenix Inc. has raised $51 million in Series B financing for the commercial launch of its first product, which is aimed at validating its platform and positioning it as an IPO-ready company.
Zogenix has closed the first $36 million tranche of the funding, with the remaining $15 million available to be called down by the company's board from this December through February 2010. All previous bridge loans were converted as part of the Series B round, said Zogenix Chief Executive Roger Hawley, including a $3.1 million bridge loan the company disclosed in a filing with the Securities and Exchange Commission in May.
The Series B round was led by existing investors Clarus Ventures and Domain Associates, which also led the company's Series A funding. Other existing investors participating in the round included Abingworth Management, Scale Venture Partners and Thomas McNerney & Partners. New investor Oxford Finance Corp. also participated.
Zogenix received approval from the Food and Drug Administration for its first treatment in July, followed by the completion of a co-promotion agreement with Astellas Pharma US Inc. in August. The treatment, Sumavel DosePro, is a needle-free sumitriptan injection targeted to begin treating migraine attacks and cluster headaches within ten minutes.
Zogenix, with offices in San Diego and Emeryville, Calif., plans to use the round to support that first product commercialization, including ramping up manufacturing inventory and sales staff. Zogenix plans to sell the treatment directly to specialty customers including neurologists, pain specialists and clinics, while Astellas will handle all primary care physician customers.
The company will also work on its pipeline development, including its second in-licensed treatment, an oral version of opioid pain reliever hydrocodone, for moderate to severe chronic pain. Zogenix plans to bring that treatment into Phase III either at the end of this year or first quarter next year.
Zogenix, which filed for and rescinded IPO plans in 2008, could renew its IPO pursuit in 2010, while also seeking non-dilutive funding through the partnership of its second treatment or DosePro technology. That technology uses compressed gas to push medication through the skin without needles.
Zogenix previously raised $78 million through Series A-1 and Series A-2 fund-raisings of $60 million and $18 million respectively. Previous investor Life Science Angels is still a shareholder in the company. Zogenix has raised a little more than $20 million in debt funding through CIT, GE Finance and Oxford Finance.
Clarus Managing Director Kurt Wheeler said this likely will be the last venture funding for the company, a testament to Zogenix's strong team for bringing the product through FDA approval and to market.
"We would like to drive the company to profitability in the next couple of years," Wheeler said. "That's important in this kind of environment."
InVivo Blog
Zogenix: The specialty pharma play Zogenix looks to be another company prepping to test the IPO waters. Earlier this summer, the company won FDA approval for its needle-free sumatriptan injection, Sumavel DosePro, designed to treat migraine and cluster headaches within 10 minutes of onset. On Wednesday Sept. 23, the privately-held company announced it had pulled in the first tranche--$36 million—of a sizeable $51 million Series B from a syndicate of backers that included Clarus Ventures, Domain Associates, Abingworth, Scale Venture Partners, and Thomas McNerney & Partners. According to the press release accompanying the news, the mezzanine round will be used to prepare for the 2010 launch of Sumavel DosePro, including bolstering inventory of the medicine and hiring 105 sales reps to promote the product. Zogenix will also be relying on the marketing muscle of Astellas, which signed a U.S.-focused co-promote deal with the company in August to market the product to primary care physicians. As part of that deal, Zogenix remains in charge of manufacturing and distribution of the migraine medicine and will promote the product mainly to neurologists. Interestingly, the specialty co. will also book all sales; Astellas will be compensated based on sales in the PCP market. (How's that for keeping the control with the smaller player?) This latest financing shows that Zogenix's backers are remaining committed to the company—all told Zogenix has raised $78 million in venture funding and another $20 million in debt. If the continued strength of the follow-on market portends an opening of the IPO window, Zogenix is a logical company to attempt an IPO given it already has a marketed product and a deal under its belt. Certainly investors may view Zogenix's strategy—differentiation via drug delivery technology inlicensed from Aradigm—as a less risky proposition than that of a discovery focused biotech such as Anthera or Omeros, who recently registered to go public.
SoCalTech
San Diego-based Zogenix, a pharmaceutical firm developing treatments for neuroscience disorders and pain, said Wednesday that it has completed a $51M, Series B preferred stock financing. The firm said that the round was led by Clarus Ventures and Domain Associates, and also included prior investors Scale Venture Partners, Thomas, McNerney & Partners, and Abingworth Management and new investor Oxford Finance Corporation. The firm said that $36M of the funding has been received, with $15M available to the firm for use between December 2009 and February 2010. Zogenix will use the funding to launch its first product, SUMAVEL DosePro, and hire staff to bring the company's total size to over 105 people.
peHub
Zogenix Inc., a San Diego-based drug company focused on pain management and CNS disorders, has raised $51 million in new VC funding. Clarus Ventures and Domain Associates co-led the round, and were joined by fellow return backers Scale Venture Partners, Thomas, McNerney & Partners, Oxford Finance Corp. and Abingworth Management. The round is structured with an initial $36 million call-down and $15 million in a second tranche callable by the company's board. Zogenix canceled an $86.25 million IPO last summer.
Xconomy
By Ryan McBride
San Diego-based Zogenix has closed a $51 million equity financing to fund the planned January 2010 launch of its needle-free system for delivering a drug for serious headaches, according to the company. The commercialization dollars from the Series B round of preferred stock will fill a funding void the firm faced when it cancelled its $86.3 million initial public offering in August 2008.
The company has collected $36 million of the $51 million round, and its board of directors can opt to secure the remaining $15 million between December 2009 and February 2010, according to the company. Previous Zogenix investors Clarus Ventures and Domain Associates led the round. Other backers in the round include Abingworth Management, Oxford Finance Corporation, Scale Venture Partners, and Thomas, McNerney & Partners. This financing is good news for the company’s well known co-founder and chairman, Cam Garner, who has also co-founded other specialty pharmaceutical firms such as Evoke Pharma, Verus Pharmaceuticals, and Cadence Pharmaceuticals.
Zogenix says it now has the financial firepower to sell its first product, a needle-free sumatriptan injection, which the firm plans to market as Sumavel DosePro. Sumatriptan, which is a generic drug for migraines and other extremely painful headaches, is marketed by London-based drug giant GlaxoSmithKline as Imitrex. Glaxo reported $242 million in 2007 sales of sumatriptan, according to Zogenix. Zogenix’s delivery system releases a quick increase in pressure to penetrate the skin and then injects liquid medicines—without needles. The firm plans to build a commercial organization of 105 people to drive adoption of the product, which will be marketed in collaboration with Astellas Pharma US. The FDA approved the firm’s sumatriptan-delivery product this July.
"Despite the challenging economic and capital markets environment, the strong support from our entire group of venture capital investors validates our accomplishments," said Roger Hawley, CEO of Zogenix, in a statement. "The Series B funding will now allow us to bring this unique product to migraine sufferers and establish our US commercial organization."
There are more than 29.5 million American who suffer from migraines, most of them women, according to the National Headache Foundation. The painful headaches can last for several days and cause people to vomit and limit their movements to avoid increased pain.
SAN DIEGO, Calif., (September 23, 2009): Zogenix, Inc. ("Zogenix"), a privately held pharmaceutical company, announced today that it has completed a $51 million Series B preferred stock financing. Clarus Ventures and Domain Associates, current investors in Zogenix, co-led the round with participation from all existing investors, including Scale Venture Partners, Thomas, McNerney & Partners, and Abingworth Management as well as new investor, Oxford Finance Corporation. The first tranche of $36 million has been closed; the remaining $15 million is callable by the company’s board of directors between December 2009 and February 2010.
The capital will be used to finance the launch of SUMAVEL DosePro (sumatriptan injection) needle-free delivery system, the company’s first product, which recently received FDA approval. Funds will primarily support the production of inventory and building the Zogenix commercial organization of over 105 people. The launch is planned for January 2010 as part of a co-promotion effort with Astellas Pharma US, Inc. which was announced last month.
"Obtaining FDA approval of our first product, validating our DosePro subcutaneous needle- free delivery system, manufacturing SUMAVEL DosePro at commercial scale, and concluding the primary care co-promotion agreement were major milestones we achieved after securing our Series A funding just three years ago," said Roger Hawley, chief executive officer and director of Zogenix. "Despite the challenging economic and capital markets environment, the strong support from our entire group of venture capital investors validates our accomplishments. The Series B funding will now allow us to bring this unique product to migraine sufferers and establish our US commercial organization."
About Sumavel DosePro
SUMAVEL DosePro (sumatriptan injection) is indicated for the acute treatment of migraine attacks, with or without aura, and the acute treatment of cluster headache episodes.
SUMAVEL DosePro should only be used where a clear diagnosis of migraine or cluster headache has been established. SUMAVEL DosePro is not intended for the prophylactic therapy of migraine or for use in the management of hemiplegic or basilar migraine and should not be administered intravenously. For a given attack, if a patient does not respond to the first dose of SUMAVEL DosePro, the diagnosis of migraine or cluster headache should be reconsidered before administration of a second dose.
IMPORTANT SAFETY INFORMATION
SUMAVEL DosePro is contraindicated in patients with uncontrolled hypertension, in patients with history, symptoms or signs of ischemic heart disease, coronary artery vasospasm, cerebrovascular or peripheral vascular syndromes and in patients with other significant underlying cardiovascular diseases. SUMAVEL DosePro should not be given to patients in whom unrecognized coronary artery disease is predicted by the presence of risk factors without a prior cardiovascular evaluation. Serious cardiovascular events, including death, have been reported when taking sumatriptan, including patients with no findings of cardiovascular disease. Considering the extent of use of sumatriptan in patients with migraine, the incidence of these events is extremely low. Cerebrovascular events, some fatal, have been reported in patients treated with sumatriptan. In a number of cases, it appears possible that the cerebrovascular events were primary, sumatriptan having been administered in the incorrect belief the symptoms experienced were a consequence of migraine when they were not. It is important to advise patients not to administer Sumavel DosePro if a headache being experienced is atypical.
SUMAVEL DosePro should not be used within 24 hours of other ergotamine-containing or ergot-type medications or other 5-HT1 agonists and is not generally recommended for use with MAO-A inhibitors. The development of a potentially life-threatening serotonin syndrome may occur with triptans, including treatment with Sumavel DosePro, particularly during combined use with selective serotonin reuptake inhibitors (SSRIs) and serotonin- norepinephrine reuptake inhibitors (SNRIs). SUMAVEL DosePro should be used during pregnancy only if the potential benefit justifies the potential risk.
In controlled clinical trials with sumatriptan injection, the most common adverse reactions were injection site reactions, tingling, warm/hot sensation, burning sensation, feeling of heaviness, pressure sensation, feeling of tightness, numbness, feeling strange, tight feeling in head, flushing, tightness in chest, discomfort in nasal cavity/sinuses, jaw discomfort, dizziness/vertigo, drowsiness/sedation and headache.
Please see full prescribing information at www.zogenix.com.
About DosePro technology
The DosePro technology is an easy-to-use, pre-filled drug delivery system designed to enable self-administration of single doses of liquid drug formulations, subcutaneously, without a needle. The DosePro technology has undergone more than ten years of design, process engineering, clinical evaluation and development work. DosePro is protected by more than 80 patents, issued and applied for, worldwide. Approximately 9,000 injections have been delivered in clinical trials in healthy volunteers using the DosePro needle-free drug delivery system.
About Zogenix
Zogenix, Inc., with offices in Emeryville and San Diego, Calif., is a privately held pharmaceutical company focused on the development and commercialization of medicines to treat neuroscience disorders and pain. The company's initial focus is the commercialization of Sumavel DosePro. Zogenix submitted a New Drug Application with the U.S. Food and Drug Administration for Sumavel DosePro in December 2007, and received FDA approval in July 2009. The company’s pipeline also includes ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain, preparing to enter Phase 3 clinical trials. Zogenix also plans to license the patented DosePro needle-free drug delivery system to other companies. For additional information, visit www.zogenix.com.
Zogenix™, Sumavel™ and DosePro™ are trademarks of Zogenix, Inc.
San Diego Source
Zogenix Inc., a privately held pharmaceutical company based in San Diego, has completed a $51 million Series B preferred stock financing.
The capital will be used to finance the launch of SUMAVEL DosePro (sumatriptan injection) needle-free delivery system for the treatment of migraine attacks and cluster headaches, the company's first product, which recently received FDA approval.
Funds will primarily support the production of inventory and building the Zogenix commercial organization of more than 105 people. The launch is planned for January 2010 as part of a co-promotion effort withAstellas Pharma US Inc., which was announced last month.
Clarus Ventures and Domain Associates, current investors in Zogenix, co-led the round with participation from all existing investors, including Scale Venture Partners; Thomas, McNerney & Partners; and Abingworth Management as well as new investor, Oxford Finance Corp.
The first tranche of $36 million has been closed; the remaining $15 million is callable by the company's board of directors between December 2009 and February 2010.
FierceBiotech
By Maureen Martino
Zogenix has ginned a hefty $51 million Series B preferred stock financing to fund the roll-out of the company's first product. Clarus Ventures and Domain Associates co-led the round, and were joined by existing investors Scale Venture Partners, Thomas, McNerney & Partners, and Abingworth Management as well as new investor, Oxford Finance Corporation. Zogenix has closed the $36 million first tranche of the round. The remaining $15 million is callable by the company's board of directors between December 2009 and February 2010.
In January, Zogenix will launch Sumavel DosePro, a needle-free delivery system which was recently approved by the FDA to treat migraines. Co-promoter Astellas pharma will also be involved in the roll-out. Most of the money raised in this round will support the production of inventory and building the Zogenix commercial organization of over 105 people.
"Obtaining FDA approval of our first product, validating our DosePro subcutaneous needle-free delivery system, manufacturing Sumavel DosePro at commercial scale, and concluding the primary care co-promotion agreement were major milestones we achieved after securing our Series A funding just three years ago," said CEO Roger Hawley. "The Series B funding will now allow us to bring this unique product to migraine sufferers and establish our US commercial organization."
New York Times
Spinal Kinetics, which makes artificial disks to treat spine injuries, has taken in in $5.3 million of its targeted $9.5 million round of debt, rights and securities, VentureBeat said, citing an S.E.C. filing.
Investors in the round were not named, but previous backers include Ascent Group, BA Venture Partners, Ivy Capital Partners and Scale Venture Partners, the publication said.
VentureBeat
Spinal Kinetics, maker of artificial disks used to treat spine injuries and degenerative diseases, has brought in $5.3 million of an anticipated $9.5 million round of debt, rights and securities, according to a filing with the SEC. The Sunnyvale, Calif. company did not list investors in this round, but has been previously backed by the Ascent Group, BA Venture Partners, De Novo Ventures, HLM Venture Partners,International Life Sciences Fund, Ivy Capital Partners, Lumira Capital and Scale Venture Partners.
VentureWire
Spinal Kinetics Inc., Sunnyvale, Calif., a developer of artificial discs for treating degenerative disc disease in the cervical and lumbar spine, has raised $5.3 million toward a $9.5 million round of debt, rights and securities. The company previously raised a total of $45 million from investors including Ascent Group, BA Venture Partners, De Novo Ventures, HLM Venture Partners, International Life Sciences Fund, Ivy Capital Partners, Lumira Capital and Scale Venture Partners.
Combined Company Will Deliver Comprehensive Solutions for Creation, Delivery and Optimization of Content and Applications
Yahoo Finance
SAN JOSE, Calif. & OREM, Utah--(BUSINESS WIRE)--Adobe Systems Incorporated (Nasdaq:ADBE - News) and Omniture, Inc. (Nasdaq:OMTR - News) today announced the two companies have entered into a definitive agreement for Adobe to acquire Omniture in a transaction valued at approximately $1.8 billion on a fully diluted equity-value basis. Under the terms of the agreement, Adobe will commence a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash.
Adobe's acquisition of Omniture furthers its mission to revolutionize the way the world engages with ideas and information. By combining Adobe's content creation tools and ubiquitous clients with Omniture's Web analytics, measurement and optimization technologies, Adobe will be well positioned to deliver solutions that can transform the future of engaging experiences and e-commerce across all digital content, platforms and devices.
The combination of the two companies will increase the value Adobe delivers to customers. For designers, developers and online marketers, an integrated workflow — with optimization capabilities embedded in the creation tools — will streamline the creation and delivery of relevant content and applications. This optimization will enable advertisers, advertising agencies, publishers and e-tailers to achieve greater ROI from their digital media investments and improve their end users' experiences.
" Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," said Shantanu Narayen, president and chief executive officer of Adobe. " This is a game changer for both Adobe and our customers. We will enable advertisers, media companies and e-tailers to realize the full value of their digital assets."
" Omniture's mission has been to enable our customers to optimize every digital interaction," said Josh James, CEO of Omniture. " By joining forces with Adobe, we will accelerate our ability to deliver on that vision and together bring new innovation to the market that improves content engagement, advertising effectiveness and the overall user experience, which will drive more advertising dollars online."
Expanded Opportunities for Adobe and Omniture
This acquisition will significantly expand Adobe's addressable market and growth potential, broadening solutions Adobe provides to the rapidly growing Internet advertising, e-commerce and digital media markets.
The combination will also expand Adobe's offering of mission-critical solutions to the enterprise customer. Adding the capabilities of Omniture will further enhance Adobe's offerings and ability to appeal to online marketers, including chief marketing officers.
The acquisition of Omniture will further diversify Adobe's business, adding a scalable SaaS platform that captures over a trillion transactions per quarter, an expansive partner ecosystem, and a recurring revenue model.
For Omniture, joining Adobe will provide global operational scale and the ability to more quickly penetrate new geographies and markets, thereby accelerating its go-to-market strategy and growth potential.
Integration and Closing Details
As part of the expected integration of the two companies, Omniture will become a new business unit within Adobe. Omniture's CEO, Josh James, will join Adobe as senior vice president of the new business unit, reporting to Adobe's president and CEO, Shantanu Narayen.
The completion of the transaction, which is subject to customary government approvals and the satisfaction of other customary conditions, is expected to close in the fourth quarter of Adobe's 2009 fiscal year.
The proposed offer represents a premium of 45 percent over Omniture's average closing price for the last 30 trading days through yesterday's close.
Adobe believes the acquisition will be accretive to Adobe's non-GAAP earnings in fiscal year 2010.
The companies will make information, including an FAQ and other details about the acquisition, available at http://www.adobe.com/aboutadobe/invrelations/adobeandomniture.html.
The call and Webcast will last approximately one hour. An archive of the call will be made available in Adobe Acrobat Connect Pro for approximately 45 days. Listening to the live Webcast works best with Adobe Flash Player version 10 or later. Firewalls designed to protect corporate information can prevent listening to the Webcast.
Forward-Looking Statements Disclosure
This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks, uncertainties and other factors, including the risks to both companies that the acquisition of Omniture will not be consummated, as the transaction is subject to certain closing conditions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements regarding: the anticipated timing of filings and approvals relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction considering the various closing conditions; any projections of earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. In addition, if and when the transaction is consummated, there will be risks and uncertainties related to Adobe's ability to successfully integrate the products and employees of Adobe and Omniture, as well as the ability to ensure continued performance or market growth of Omniture's products. These risks, uncertainties and other factors, and the general risks associated with the respective businesses of Adobe and Omniture described in the reports and other documents filed by each of them with the Securities and Exchange Commission, could cause actual results to differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. All forward-looking statements are based on information currently available to Adobe and Omniture and are qualified in their entirety by this cautionary statement. Neither Adobe nor Omniture assumes any obligation to update any such forward-looking statements or other statements included in this press release.
Additional Information and Where to Find It
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities. The solicitation and the offer to buy shares of Omniture's common stock will only be made pursuant to a tender offer statement on schedule TO, including an offer to purchase and other related materials that Snowbird Acquisition Corporation, a wholly-owned subsidiary of Adobe Systems Incorporated, intends to file with the Securities and Exchange Commission. In addition, Omniture will file with the Securities and Exchange Commission a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer. Once filed, Omniture stockholders will be able to obtain the tender statement on schedule TO, the offer to purchase, the Solicitation/Recommendation Statement on Schedule 14D-9 and related materials with respect to the offer, free of charge at the website of the Securities and Exchange Commission at www.sec.gov, from the information agent and dealer manager named in the tender offer materials or from Snowbird Acquisition Corporation. Omniture's stockholders are advised to read these documents, any amendments to these documents and any other documents relating to the tender offer that are filed with the SEC carefully and in their entirety prior to making any decisions with respect to the offer because they contain important information, including the terms and conditions of the offer.
About Omniture
Omniture, Inc. is a leading provider of online business optimization software, enabling customers to manage and enhance online, offline and multi-channel business initiatives. Omniture's software, which it hosts and delivers to its customers as an on-demand subscription service and on-premise solution, enables customers to capture, store and analyze information generated by their Web sites and other sources and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. In addition, Omniture offers a range of professional services that complement its online services, including implementation, best practices, consulting, customer support and user training through Omniture Education. Omniture's more than 5,000 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, Sony and HP. www.omniture.com
About Adobe Systems Incorporated
Adobe revolutionizes how the world engages with ideas and information – anytime, anywhere and through any medium. For more information, visit www.adobe.com.
© 2009 Adobe Systems Incorporated and Omniture, Inc. All rights reserved. Adobe, Flash, and the Adobe Logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Omniture and the Omniture logo are either registered trademarks or trademarks of Omniture, Inc. in the United States and/or other countries. All other trademarks are the property of their respective owners.
Reuters
SEATTLE (Reuters) - Adobe Systems Inc, maker of Photoshop and Acrobat software, said on Tuesday it would buy Omniture Inc in a deal it said was worth $1.8 billion, as it looks to expand its presence in the business software market.
The company offered to pay $21.50 per share in cash for Omniture, which sells software to businesses that stores and analyzes information generated from customers on their websites. Omniture shares closed at $17.32 on Nasdaq.
At the same time, Adobe reported that third-quarter earnings, excluding items, fell to 35 cents per share from 50 cents per share a year ago. But it beat Wall Street's average forecast by a penny, according to Thomson Reuters I/B/E/S.
Adobe shares fell 3.6 percent in after-hours trading to $34.34. Omniture shares were halted after the close.
AP
NEW YORK — Adobe Systems Inc. said Tuesday it will buy the Web analytic software company Omniture for about $1.8 billion, giving the maker of content-creation software a way to let marketers monitor the effectiveness of such content.
San Jose, Calif.-based Adobe Systems Inc. said it will buy Omniture Inc. for $21.50 per share in cash, a premium of 24 percent over Omniture's closing stock price Tuesday.
The announcement came as Adobe said it earned $136 million, or 26 cents per share, in the fiscal third quarter that ended in August, down 29 percent from the same time a year earlier.
Excluding one-time items, Adobe earned a profit of 35 cents per share, a penny above what analysts polled by Thomson Reuters were expecting.
The maker of Photoshop, Flash and Acrobat software says its revenue fell 21 percent to $697.5 million.
Bloomberg News
Adobe Systems Inc., the biggest maker of graphic-design programs, agreed to buy online ad measurement company Omniture Inc. of Orem for $1.8 billion.
Adobe offered $21.50 a share, which represents a 24 percent premium over Omniture's closing price of $17.32 (up 17 cents). Adobe shares fell 3.6 percent in extended trading on the news.
CEO Shantanu Narayen is coping with a decline in U.S. advertising spending, along with slower sales in Europe, where companies typically close for vacation in August. Total U.S. ad spending fell 15.4 percent in the first half of the year, compared with the year-earlier period, according to market research firm Nielsen Co.
Adobe also reported results for the third quarter and forecast earnings for the current period. Revenue will be $690 million to $740 million. Excluding some costs, earnings will be 33 cents to 39 cents a share. Analysts on average estimated 37 cents in profit and $723.6 million in sales.
Adobe fell to $34.32 in extended trading. The shares advanced 43 cents, to $35.62, in Nasdaq Stock Market trading. They have gained 67 percent this year.
Mercury News
By Frank Michael Russell
Adobe Systems, the San Jose maker of graphic-design and Internet software, intends to acquire Web analytics provider Omniture for $1.8 billion in cash.
Adobe announced the deal this afternoon after the stock markets closed. Adobe said it will offer $21.50 a share to owners of Omniture stock. Omniture stock closed today at $17.32.
"Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," Adobe CEO Shantanu Narayen said in a statement announcing the deal. "This is a game changer for both Adobe and our customers. We will enable advertisers, media companies and e-tailers to realize the full value of their digital assets."
Orem, Utah-based Omniture's customers include Internet and online-commerce giants including eBay, AOL, Wal-Mart, Microsoft, Neiman Marcus, Oracle, Sony and Hewlett-Packard.
"Omniture's mission has been to enable our customers to optimize every digital interaction," Omniture CEO Josh James said in the statement. "By joining forces with Adobe, we will accelerate our ability to deliver on that vision." Omniture would become a business unit of Adobe, and James would join the company as senior vice president in charge of that unit, according to the announcement.
Adobe expects the deal to close by the end of its fiscal fourth quarter.
Cnet
By Ina Fried
Adobe said on Tuesday that it has reached a deal to acquire Web analytics firm Omniture for $1.8 billion, or $21.50 per share.
That represents a 45 percent premium to Omniture's average closing price for the last 30 days, Adobe noted in its press release. Omniture, which was started in 1996, has about 1,200 employees and took in just under $300 million in the 12 months ending Dec. 31.
Adobe CEO Shantanu Narayen called the move a "game changer" for the company.
"Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," Narayen said in the press release announcing the deal.
The two companies said the deal is expected to close during Adobe's fourth quarter and is subject to government approvals. Omniture will become a new unit within Adobe, with Omniture CEO Josh James continuing to lead the business as an Adobe senior vice president. Adobe said the deal should add to earnings in fiscal 2010.
Update 1:45 p.m. PT: In an interview, Adobe senior vice president Paul Weiskopf said the deal will allow Adobe to merge the "art" of developing and delivering content with the "science" of measuring the impact of that content.
"Today that's a real pain point for customers," Weiskopf said. "We have the opportunity to integrate what is today a pretty disparate and not tightly integrated set of workflows." The deal is the company's largest since its $3-billion-plus acquisition of Macromedia, announced in April 2005.
Weiskopf declined to discuss how long the deal had been in the works or whether there will be any job cuts once the deal goes through, although the company has a conference call slated to start at 2 p.m. PT and will also file additional details with the Securities and Exchange Commission as part of its tender offer to acquire Omniture's shares.
VentureWire
By Tomio Geron
Having built out a network of small businesses using its service, newly profitable MerchantCircle Inc. is now going after consumers.
MerchantCircle originally built out a network for small businesses to advertise, promote deals and blog. The company signed up more than 900,000 merchants nationwide and has more than 2% of total merchants in 49 states, and charges a minimum fee of $30 per month for services like placement of search engine advertising to drive traffic. The company, which says it now has more than 20 million monthly unique visitors, uses a self-service system to sign up businesses and has grown without the benefit of a sales force.
Now putting the network to use, the company has released MerchantCircle Answers, a service where consumers can ask a question and companies can answer to assist them, for example on what kind of flooring material to buy. Because MerchantCircle has small businesses in many locations, the questions can be directed at a specific geographic area, for example, to ask where to find a particular product.
Companies are discouraged from only promoting themselves without answering questions by a rating system and the community, which polices itself.
MerchantCircle Neighbors is a tool for consumers to "follow" their local merchants and clip virtual coupons from those companies in a more consumer-oriented interface.
While other companies such as Yelp Inc. or IAC's Citysearch are focused on large cities and categories such as restaurants and bars, MerchantCircle has instead gone after small towns across the country, where businesses often do not have a Web site.
"What we set out to do is be a very broad approach to serving merchants all over the country," said Darren Waddell, vice president at MerchantCircle.
The company does not need to raise further funding, unless it needs to do so for strategic purposes such as acquisitions, Waddell said.
The company has raised $14.1 million over two rounds from IAC/InterActiveCorp, Rustic Canyon Partners, Scale Venture Partners and Steamboat Ventures.
VentureBeat
By Anthony Ha
MerchantCircle creates and manages profile pages for small businesses, and it says it has built a sizable user base and reached profitability earlier this year.. Now it's trying to offer those businesses more ways to attract customers online, with new services called MerchantCircle Answers and MerchantCircle Neighbors.
MerchantCircle Answers is supposed to connect consumers in need of answers to small businesses with expertise. To use the example MerchantCircle offered, you might want to know about the best kind of flooring to install. You could post the question on MerchantCircle, then it would be forwarded to the businesses that MerchantCircle considers to be the experts in flooring, and any of them could pop in and answer. That means consumers find the answers they're looking for, merchants get recognition, and MerchantCircle gets to keep businesses active on its site.
In the past, one of MerchantCircle's goals was to drive search engine traffic to its business profiles — so that if I typed in "barber" and "Noe Valley" (my neighborhood in San Francisco) into Google, the right MerchantCircle profiles would pop up. Now MerchantCircle hopes to get traffic when people type questions into Google too — see for example this Google search for, "Should I use Pergo or hardwood for my kitchen floor?"
MerchantCircle Neighbors, meanwhile, is a way for consumers to create an account and "follow" a businesses, similar to what you'd do on microblogging service Twitter. Then businesses can send out coupons and promotions to those customers. It's a way for businesses to promote to consumers directly and again, keeps them active on the MerchantCircle site.
Overall, the Los Altos, Calif. company says that more than 900,000 merchants have claimed their profiles. (To market itself, MerchantCircle creates profiles for all the businesses it can find, then offers them a way to take control of those profiles.) Around 70 percent of the merchants have no other official web presence, and MerchantCircle says that where business listing and review sites like Yelp have built a big user base in urban areas like San Francisco, MerchantCircle is more geographically dispersed, with 1,120 towns that have more than 100 MerchantCircle businesses.
MerchantCircle has raised a total of $14.1 million from Rustic Canyon Partners, Disney's Steamboat Ventures, Scale Venture Partners, and IAC, the company that owns Citysearch.
TechCrunch
By Leena Rao
Hyperlocal business directory MerchantCircle has been steadily growing as an online network and business directory for merchants in smaller towns to advertise to consumers. MerchantCircle has long targeted its site's features towards merchants versus catering towards the consumer, as sites like Yelp and CitySearch do. Today, the startup has launched two features to appeal to the consumer side, Neighbors and Answers.
MerchantCircle provides small businesses with a web page listing, blogging and email newsletter application, and a local business social network that focuses on connecting local businesses with each other. Since launching in 2006, MerchantCircle has attracted nearly one million small businesses to engage daily on the site in hyperlocal areas of the U.S. With Neighbors and Answers, MechantCircle is trying to appeal to the consumer side by creating conversations between consumers and their local merchants.
Answers is a section of MerchantCircle which allows consumers to enter a question to merchants about any topic. So a sample question from a consumer could be "what kind of oil do I put in my truck," and business owners will give free advice on their area of expertise. The incentive for the business owner is that it's good advertising. And the consumer can see the profile of who is answering the questions, which includes consumer reviews.
MerhcantCircle's "Neighbors" creates a mini-social network around the site where consumers can "follow" local businesses for information on promotions, coupons and announcements. In order to access this feed, consumers need to create a profile.
While MerchantCircle may not be as popular in larger metropolises where Yelp and Citysearch are dominant, the startup has gained traction in small towns where the larger sites don't have reach. For example, 50 percent of local businesses in Wasilla, Alaska are on MerchantCircle and actively engage with the site.
According to ComScore, MerchantCircle isn't that far behind more widely known business listing and reviews sites like Yelp. In July, MerchantCircle had 7.5 million unique visits; Yelp had 8.6 million unique visits in July. Of course, the MerchantCircle focuses primarily on service busineses like plumbers, landscapers, mechanics etc. whereas CitySearch and Yelp include restaurants, bars, concerts and other listings. MerchantCircle also faces competition from YellowPages.com.
Screenwerk
By Greg Sterling
Late last week Yahoo! expanded Neighbors, modeled to some degree on Yahoo! Answers, nationwide. And this morning MerchantCircle launched "Answers." It enables consumers to ask any question and allows MerchantCircle members (SMBs) to respond. There's no advertising or other monetization associated with the feature (other than AdSense at the top of the page). However businesses and consumers must be registered to participate.
The program has been running in a limited beta mode for roughly eight weeks and here are the preliminary findings based on MerchantCircle's survey of usage and consumer response:
Usage:
- more than 12,000 consumers have asked questions
- nearly 15,000 merchants have answered questions
- 85% of questions are answered within 24 hours
User feedback
- 75% say Answers is "useful" or "very useful"
- 78% say the response they received was "relevant" or "very relevant"
- 86% say the answer to their question was "valuable" or "very valuable"
- 79% say they are "likely" or "very likely" to use the Answers product again
Beyond the fact that this type of service is valuable as a general matter MerchantCircle sees it as a tool to "re-engage" merchants via its site. The community can vote for the best answer (as with other systems) and the merchants who participate can gain points to establish themselves as experts.
Consumers categorize their questions and can limit the geographic scope of the response to their area:
Finally the questions that consumers are asking and the related merchant answers will show up in search results, which is how MerchantCircle gets most of its traffic today. The site claims 20 minute monthly uniques.
The thin-client virtualization startup has captured 15% of the K-12 education market in two years
VatorNews
By Matt Bowman
President Obama has earmarked billions of stimulus dollars for education technology. If the education system holds true to form, that money will be summarily devoured, leaving the bureaucracy hungry for seconds. The problem is that short-term windfalls can easily go to short-term programs. On the other hand, investing in long-term technology infrastructure can require ongoing IT support, which means a minor glitch turns a classroom into a digital graveyard.
Virtualization startup NComputing thinks they have a solution. The two-year-old startup provides thin-client virtualization that enables up to 30 screens to run off a single computer, at a cost of $70 per station. The company has sold millions of stations to schools internationally, including 180,000 in Macedonia schools and 50,000 Andhra Pradesh, India, and CEO Stephen Dukker says they’ve cornered 15% of the market for workstation purchases in U.S. K-12 schools. Check out the embedded video interview with Dukker for a rundown on the company’s traction and exit prospects.
I also spoke with investor Rob Herb of Scale Venture Partners, who says he likes NComputing for two reasons: Dukker is a dynamic, "evangelistic" entrepreneur who "brought eMachines from nothing to $1 billion in and a very short time," and NComputing fills a big hole in the market. Herb, who as a long-time executive at AMD saw a lot of virtualization solutions, says most thin-client architecture is fine for text, but not for the rich experience NComputing enables, and traditional Citrix-based solutions are not good for small business and schools, since they would normally require an IT person.
I asked Dukker what it’s like to run a company with such a potentially broad social impact. He says attracting top talent is easy, and that turnover is almost 0%, compared with the Silicon Valley average of 20%.
SAN RAMON, Calif., Sept. 2 /PRNewswire/ -- Reply.com (www.reply.com), a leader in locally-targeted online marketing, announced significant growth in terms of revenue, new categories, and enhanced features and services since launching its beta Reply! Marketplace platform a year ago. In the face of a struggling economy, Reply.com has posted over 50 percent revenue growth in the Automotive and Real Estate categories, and has experienced increasing profitability over the last six consecutive quarters.
Since the beta launch, the company has added key new categories including Foreclosure, Home Improvement, Used Cars, and Home and Auto Insurance. The technology is highly scalable, and its effectiveness as a platform for efficiently and profitably acquiring locally-targeted traffic has proven itself. Due to the platform's steady and optimized performance, today the company has rolled out the full production version of the Reply.com Marketplace, lifting the "beta" label.
With a strong track record of success in performance-based marketing, Reply.com has introduced a breakthrough new model for the acquisition of locally-targeted and category-specific consumers on an Enhanced Click(TM) or per-lead basis that has led to significant growth. By eliminating the need for complex and expensive online marketing infrastructures and large teams of experts, Reply.com is making Internet marketing profitable and user-friendly for businesses of all sizes.
Company Founder and CEO Payam Zamani said, "Historically, lead generation has been scrappy and not as professionally implemented as CPC- and CPM-based platforms. Our Marketplace solution provides a platform that is designed to be comparable to Adwords and RightMedia, but is designed to charge on a per-lead or per-Enhanced Click(TM) basis, offering complete control over price, quality, and volume with a live auction for bidding," said Zamani. "Our technology makes online marketing accessible to the $100 billion locally-targeted ad market."
Reply.com's Enhanced Click(TM):
- Represents a consumer with interest in a particular product or service in a specific geography
- Eliminates the complexity of managing keywords while increasing targeting precision
- Enables local advertisers to come online without needing to hire an agency or become experts in SEM
- Leverages HTML widgets to convert remnant content inventory into high-ROI, targeted local traffic
Reply.com's Leads:
- Provide lead buyers control over price, quality, and volume. Leads are sold in an auction-based, market-driven pricing format where a ratings system communicates quality
- Enable lead sellers to maximize yield by taking advantage of Reply.com's single platform to access one of the most complete networks of lead buyers
- Allow publishers to launch a white-label lead generation and monetization solution
"To best serve our advertisers, we also created an advertiser-centric exchange where ad dollars can be recovered by selling off poorly-targeted traffic generated through other CPM and CPC solutions through the Reply! click and lead exchange," said Zamani. "This helps our clients acquire what matters most to them--consumers with intent to purchase in locations where they can service them. Also, by selling excess clicks or leads into the Marketplace, they can recoup ad dollars for traffic acquired through other platforms that fall outside of their areas of coverage."
Reply.com has been active in events and speaking engagements-including Search Engine Strategies and LeadsCon East-and was invited to join elite industry companies at the upcoming TARGUSinfo Online Lead Quality Summit in Las Vegas, September 23-24, and at the J.D. Power Automotive Internet Roundtable in Las Vegas, October 14-16.
About Reply!, Inc.
Reply.com is the leading online marketing platform for the acquisition of locally-targeted and category-specific consumers on a cost-per-click or cost-per-lead basis. By eliminating the need for complex and expensive online marketing infrastructures and large teams of experts, Reply.com makes Internet marketing available to businesses of all sizes. Reply! provides a highly-profitable alternative to online marketing solutions offered by major search engines and ad networks. To learn more about Reply!, visit www.reply.com.