from the December 2007 issue

Quigo exits at $363 million

Israel's Quigo, (IHTIR-Apr 2004) which specializes in internet advertising and marketing services, was sold to AOL , for $363 million. Quigo Technologies Inc., a a seven year old developer of proprietary search solutions for online contextual advertising, search engine marketing and business intelligence, provides AdSonar contextual advertising solutions. AdSonar enables online publishers and licensees to serve contextually targeted advertising that achieves greater relevancy, reach and revenue for publishers, licensees and advertisers alike. "Overture" has licensed Quigo's AdSonar, and will combine their solution with AdSonar's powerful, dynamic capabilities. Overture is a subsidiary of Yahoo and the license will provide Quigo with its first substantial flow of revenues.

Founded in 2000, Quigo provides innovative, performance marketing solutions for advertisers and premium publishers. The company has more than 500 premium publisher relationships, including a recently finalized deal with Time, Inc., and has a broad network of roughly 3,000 advertisers. Quigo's AdSonar technology lets advertisers purchase ads on Websites based on specific pages, sections, topics or keywords. Quigo offers many types of advertising and a variety of pricing options including text, display and video ads bought on a cost-per-click, cost per impression, or cost per time basis. In addition, it operates FeedPoint, a search engine marketing business that helps local and retail advertisers efficiently manage their marketing relationships with search engines and comparison shopping platforms.

Online contextual advertising is part of the fast growing search engine marketing industry, which experienced growth of 275% in 2001 and 325% in 2002 to $927.4 million in the US, according to the Interactive Advertising Bureau. "We believe online search engine marketing will continue its impressive growth, possibly exceeding an estimated $7 billion in 2007 worldwide revenues, and contextual advertising, although in very early stage, it is one of the fastest growing new segments within this industry," says U.S. Bancorp Piper Jaffray senior research analyst Safa Rashtchy. "Through its technology and now this relationship with Overture, Quigo has established a solid presence in this industry."

Quigo was founded by Yaron Galai who serves as its COO and Oded Itzhak who is its CTO.

Reprinted from the Israel High-Tech & Investment Report December 2007

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