E.W. Scripps Co. has purchased Shopzilla, a comparison-shopping search engine, in a deal valued at $560 million, officials said Monday.
Scripps will pay $525 million in cash for 100% of Shopzilla. In addition, Shopzilla shareholders will receive the amount of Shopzilla’s net working capital at the time of the closing, which is expected to be about $35 million.
The transaction, pending regulatory and other approvals, is expected to be completed during the third quarter.
Using a proprietary, patent-pending algorithm called “ShopRank,” Shopzilla aggregates and organizes information on more than 30 million products from 55,000 retailers worldwide.
Shopzilla -- which will be a stand-alone unit of Scripps -- was founded in 1996. A privately held company, Shopzilla is expected to generate $30 million-$33 million in profit on revenue of $130 million-$140 million in 2005.
“Shopzilla is a significant Internet play for Scripps,” CEO Ken Lowe said in a prepared statement.