US-based NewWorldIQ would not reveal the terms of the deal, although it is understood that the acquisition of Paramark was designed mainly to give the business control of Paramark's proprietary technology.
NewWorldIQ, which employs around 60 worldwide and 35 in Dublin, will not take on the bulk of Paramark's employees, with the exception of a few "key technical staff members," a spokesperson said. At its peak, Paramark employed 22.
A number of Paramark customers however will transfer as part of the deal, including financial services clients such as Capital One and Ameritrade. Other firms like Intel, Gatoraid, NextCard and Omnisky have been Paramark customers in the past.
Paramark had built a Web-hosted service that the company says can help deliver peak performance for on-line marketing campaigns through a proprietary technology known as PILOT (Paramark Interactive and Learning Optimization Technology). PILOT consists of patented algorithms that continually improve e-marketing campaigns based on the marketer's objectives.
According to Fiona Harte of NewWorldIQ's Dublin office, the PILOT technology should fit well into NewWorldIQ's suite of products. "The missing piece for NewWorldIQ is to have a highly sophisticated optimisation tool," she said. The firm's existing products are mainly enterprise marketing automation solutions that include modular software products and professional services for e-marketing campaigns.
"The two companies fit together very well strategically and operationally," added Michael Mahoney, chief executive officer of NewWorldIQ. "The acquisition of Paramark significantly expands our core capabilities as well as our client base and market reach."
One of NewWorld's main investors, eVerger, which pumped USD7.5 million into the company last month, is also a primary investor in Paramark. EVerger invested USD9 million in Paramark in February 2001 and two of the company's board members, Andrew Burke and Andy Harwood, are top eVerger executives and also sit on the board of NewWorldIQ. To date NewWorldIQ has raised more than USD50 million in total financing from investments received in the US, Dublin and London.
NewWorldIQ was formed as a result of the merger between Dublin-based NewWorld Commerce and California-based IQ Commerce. Although its US office has overall responsibility for product development, the company describes its Dublin operation as its main product development facility.