Yahoo Buys Web Analytics Provider IndexTools

Yahoo has agreed to acquire Hungary-based web analytics software provider Tensa Kft, also known as IndexTools. The transaction is expected to be completed in the first half 2008, subject to closing conditions.

IndexTools provides an analytics platform for companies’ online marketing activity. Its web analytics and bid-management capabilities enable businesses to measure the effectiveness of their online marketing.

IndexTools is one of the older web analytics companies. In 2005, Google acquired web analytics company Urchin and since then the web analytics industry has been in a consolidation phase. But unlike Urchin, which offers only web analytics, IndexTools also has a hosted keyword bid-management service.

Bassel Ojjeh, senior vice president and head of Yahoo’s strategic data solutions group, said: “We expect that the IndexTools’ technology platform will provide our customers the opportunity to more quickly uncover and act on these insights, enhancing Yahoo’s status as a partner of choice in online marketing and the must buy for the world’s advertisers.”

The acquisition follows Microsoft’s February $42bn bid to acquire Yahoo. The deal didn’t go through, but Microsoft is now talking to News Corp about a joint bid to acquire Yahoo.