EMERYVILLE, Calif., May 28 -- Ask Jeeves, Inc. (Nasdaq: ASKJ) a provider of Web-wide search, has entered into a definitive agreement under which Kanisa, Inc. will acquire Jeeves Solutions, the enterprise software division of Ask Jeeves. Jeeves Solutions' advanced search technology and best-in-class analytics will enable Kanisa to offer a larger, more robust suite of customer service solutions to corporate customers worldwide. With the sale, Ask Jeeves will focus solely on its growing Web-wide search business.
I'm always dubious about the future of a company when they sell a unit such as this. I'm probably way off base here and don't pretend to understand their underlying business but I would assume that Jeeves Solutions, in that it uses ask's existing technology, would provide a steady stream of higher margin income than the web-based business.
Either they were strapped for cash or this is a pretty gutsy bet on the next couple of years. I've been becoming quite a fan over the past month or so for searches in my segment, they seem highly-focused without too mmuch fluff.
Now for them to get the word out about the changes over the past few months. $3.5 million in 'cash on closing' for Solutions should finance a pretty good ad campaign.