January 22, 2001, 7:18 PM — SAN JOSE -- Network monitoring software vendor NetIQ last week announced it will shell out $1 billion worth of stock to buy WebTrends, best known for products that track and report online behavior.
The merger creates a company with a market capitalization of more than $4 billion and a product portfolio that has little overlap. The WebTrends brand name will most likely remain, with the company's Portland, Ore., location becoming NetIQ's largest facility.
WebTrends co-founder and CTO Glen Boyd says the merger has little to do with the recent economic downturn and more to do with the companies seeing an opportunity to grow and profit. WebTrends, founded in 1993, went from $20 million in profits in 1999 to more than $60 million last year, he says.
"What makes this such a great fit is that we have the same types of customers, but WebTrends focuses on Web site administration and NetIQ on systems management," Boyd says.
"Neither company offers an all-encompassing framework, but two high-growth companies coming together can share distribution channels and technologies," he adds.
NetIQ executives say the coupling will help the company expand its Windows-centric offerings to address customers' Web-based man- agement needs.
Net IQ: www.netiq.com