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KnowledgeStorm, which provides information technology vendors with qualified sales leads, is being acquired.
TechTarget, which is based in Massachusetts, said Wednesday it would buy KnowledgeStorm for some $58 million in cash and stock. The deal is expected to close in the second quarter of next year.
TechTarget always struck me as the VerticalNet of the software/server vertical. In my view they've been groping for traction as a sales lead generator for awhile.
What TechTarget gets with the KnowledgeStorm aquisition is a platform that does things a bit more efficiently than TT's "quality content" ->leads model ever has.
Interesting model: Software related PPC -> Vendor "Directory" -> Leads -> $$$. Basically arbitrage, using Adwords PPC to aggregate software purchase intent leads. Somewhat like KnowledgeStorm being the PPC manager for a variety of firms that don't wish - or domain quite yet have the ability - to do it for themselves. The PepperJam of the "software affiliate" marketplace? ;)
The value Knowledgestorm brings to those who list their wares there is that Knowledgestorm has developed meaningful traffic to the site that converts for those listed. Not just from organic and PPC, anyone can do that. They've gone beyond that and brought in converting traffic from vertically related websites in addition to their organic and PPC efforts. They simply don't have peers and are a model for how to approach lead gen.