E-commerce service provider Digital River has acquired the software services division of NetSales, a privately held company that provides E-commerce services to software publishers on an outsourced basis. Through the agreement, Digital River can more quickly expand its customer base of software clients.
"This acquisition is an example of industry consolidation," says Digital River CEO Joel Ronning. "We're helping major software companies distribute their product over the Internet."
During the next two months, NetSales software division clients, which include Educational Testing Service, an educational measurement organization, and Network Flight Recorder, which develops network traffic monitoring and analysis tools, will transition to Digital River, which will build and manage their E-commerce sites.
Digital River exchanged 1 million shares of common stock, worth $6 million for the software division. NetSales can receive an additional 350,000 shares, or $2 million, based on the revenue that Digital River gains in the next six months from NetSales' clients.