TechTarget, (NSDQ: TTGT) the tech media B2B company, has reported its Q3 results and an acquisition. It has bought KnowledgeStorm, the online IT white paper and lead gen site, for $58 million, with about $52 million in cash and 359,820 shares of unregistered common stock of TechTarget. This acquisition has been in work for a long time now, and earlier in February we heard United Business Media (LSE: UBM) was a serious candidate to buy it. Also, TTGT already owns KnowledgeStorm competitor BitPipe, which it bought for about $40 million in late 2004. According to the company, KnowledgeStorm will contribute revenues of $12 – $14 million and adjusted EBITDA of $4.5 – $5.5 million during the first twelve months post-integration (expected to close in Q208).
Meanwhile, TechTarget also announced its Q3 results: its revenues for Q3 increased by 15 percent to $23.3 million compared to $20.3 million for the comparable prior year quarter. Online revenues, which represented 63 percent of total revenues, increased by 17 percent to $14.7 million compared to $12.6 million for the comparable prior year quarter. Net income was $1.54 million compared to $1.59 million for the comparable prior year quarter, representing a decrease of 3 percent…the company says the decline is primarily attributable to an increase in stock-based compensation expense. More in the earnings release.