Affiliate Link Startup VigLink Buys Rival DrivingRevenue

VigLink, a Google-backed startup that helps publishers monetize the traffic they send to e-commerce sites, is buying more established rival DrivingRevenue. Like VigLink, which launched its service earlier this year, DrivingRevenue provides customers with a few lines of code which they embed on their sites in order to automaticalaly enroll in thousands of affiliate marketing programs; they get a commission whenever visitors click on a link to a third party site and make a purchase.

VigLink CEO Oliver Roup, who will head up the combined company, says the deal makes VigLink the biggest player in the market, ahead of rival SkimLinks. He says that together VigLink and DrivingRevenue will process about two million clicks a day. They list Internet Brands, Technorati, and Posterous among their customers.

Roup says the two companies will combine their services, allowing them to get better rates from affiliate marketing programs; he also says it’s possible that the new company might introduce some additional products based on the data it collects about user’s shopping habits, which might be useful in ad targeting.

No financial terms of the deal were announced, although Roup said the purchase price was a “mixture of cash and equity, very heavily weighted to future value.” “Driving Revenue did not cash out, they doubled down,” he said.

VigLink has raised $800,000 from investors including Google (NSDQ: GOOG) Ventures, First Round Capital and LinkedIn Founder Reid Hoffman. DrivingRevenue, which was established in two years ago, hadn’t raised venture capital funding.