Needham, Mass.—IT media company TechTarget announced late Wednesday that it has acquired KnowledgeStorm for about $58 million.
KnowledgeStorm is a search resource for IT professionals that is designed to generate qualified leads for vendors.
“Our preliminary internal projections are that KnowledgeStorm will contribute revenues of $12 [million] to $14 million and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] of $4.5 million to $5.5 million during the first 12 months post-integration,” said Greg Strakosch, CEO of TechTarget, in a news release. “We expect the integration to be fully completed by the end of the second quarter of 2008, and further guidance will be provided when we report 2007 results in February.”
Also on Wednesday, TechTarget reported its third-quarter revenue rose 14.7% to $23.3 million, from $20.3 million in the year-earlier period. Online revenue, which represented 63% of total revenue, increased 16.7% to $14.7 million, from $12.6 million a year earlier.
Net income for the quarter fell 3.1% to $1.54 million, from $1.59 million a year earlier. The decrease was primarily due to an increase in stock-based compensation expenses, which rose to $1.65 million from $91,000 in the third quarter of 2006.