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Interwoven Seals Optimost Deal, Reveals Q3 Earnings

Interwoven’s acquisition of Optimost, which occurred earlier this month, is official and all indicators point toward Interwoven having gotten a real bargain.

Interwoven expects Optimost to deliver up to US$2 million in earnings this quarter.

If the Optimost portfolio can continue to contribute to revenues at this rate, and add the expected technology boon to Interwoven’s stable of Enterprise CMS software, the $52m spent on the buy-out will seem like small potatoes.

All Optimost employees, including founders Mark Wachen and Lance Lovette, have joined Interwoven as part of the deal.

The acquisition is calculated to augment Interwoven’s product line with particular regard to clients’ marketing needs.

Optimost is a pioneer in ‘multivariable testing’ which allows users to create and contrast numerous permutations of copy, offers, and layouts; and test them against each other.

Users get to try out multiple methods for displaying and promoting products to decide which one works best.

The hook here is the amount of layouts/permutations which Optimost’s technology runs concurrently: competing technologies like AB Testing only support 1:1 comparison.

It’s been a busy month for Interwoven. In addition to finalizing the Optimost deal and releasing the new 3.0 edition of their thoroughly fascinating CAP product, the company also disclosed encouraging third quarter earnings.

Q3 earnings for the Nasdaq-listed company were up by 9% over Q3 2006 to US $55.5 million (with 14% growth in license revenues). Net earnings were not disclosed, but the company did reveal that 76 new enterprise clients had been acquired during the period, bringing their customer base to over 4000.

New customers welcomed into the Interwoven fold included Mattel, Novartis and the US Department of Homeland Security.

Kudos to Interwoven on their growth and financial success.