Keynote Systems Buys Online Research Firm

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Web performance management firm Keynote Systems Inc. will pay $20 million in cash for Vividence Corp., an online customer research firm with clients such as Yahoo, Timberland, USA Today, eBay, Williams-Sonoma, FedEx, Microsoft and Citibank.


The acquisition is Keynote's third in the space following the Enviz purchase in October 2002 and NetRaker in April. With Vividence in its fold, Keynote claims it will dominate 80 percent of the online customer experience management market. The deal is expected to close in 30 days.


"It's not a matter of taking over competition," said Arnold Waldstein, vice president of marketing and business development at Keynote, San Mateo, CA. "It's more about consolidating our capabilities and broadening our footprint."


After the deal's closing, all 50 employees of Vividence will move into Keynote's office.


The Vividence name will remain, but eventually will be phased out.


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