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Sunday, November 22, 
2:12 am

Web marketing firm CoreMetrics takes in $60m round

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ex_coremetrics_logo.jpgWeb analytics and marketing company CoreMetrics Inc. is set to announce a new $60 million mezzanine round, intended to fund continued growth and acquisitions in advance of an anticipated public offering.

British investment firm 3i Group plc led the new round, alongside existing investors Accel Partners, Highland Capital Partners and Financial Technology Ventures. The deal comes at an increased valuation two years after a $31 million Series D round, and brings total funding since a 2002 recapitalization to $111 million.

CoreMetrics chief executive Joe Davis pointed to 3i's early private investment in publicly traded Omniture Inc. [OMTR] as evidence of the firm's expertise in the online marketing arena. Omniture competes directly with CoreMetrics, which combines Web analytics, behavioral and search-based marketing, and delivers its software via the on-demand model.

3i also holds a stake in domain-name registrar and search marketing company Demand Media Inc.; Davis said the two do not compete, but have not yet explored partnership opportunities either.

CoreMetrics briefly reached profitability in the late months of 2007, but will slip back into a deficit as it invests in its future over the coming months. It expects to hire new sales staff and marketing initiatives, both in the U.S. and Europe, while pursuing acquisitions as well. Davis said CoreMetrics frequently receives inbound M&A interest, but has not seriously explored a sale. -- Paul Bonanos

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