Monday, February 4, 2008

Bridgeline pays $4M for Ohio web developer

Woburn-based Bridgeline Software Inc. has acquired a Cleveland web application development company in a stock-and-cash deal worth an estimated $4 million.

Tenth Floor Inc., founded in 2001, specializes in content management and e-commerce applications. Bridgeline officials said the $4 million deal includes $504,000 in cash, a $96,000 repayment of a bank line of credit and 640,000 shares of Bridgeline Software common stock.

Tenth Floor, which operates a satellite office in Minneapolis, Minn., posted sales of $3 million during 2007 and reports having more than 260 customers.

Bridgeline, which was founded in 2001, develops on-demand web-management software and web applications. In addition to its Woburn headquarters, the company operates facilities in Atlanta; New York; Washington, D.C.; and Bangalore, India.

Bridgeline has purchased several tech companies since its inception, including Streamline Communications Inc. of Boston, New Tilt Inc. of Cambridge, Lead Dog Digital Inc. of New York City and Interactive Applications Group Inc. of Washington, D.C.

In July 2007, Bridgeline finalized the acquisition of Atlanta-based Objectware Inc., a developer of web applications for business, for up to $8 million in cash and stock. In September 2007, the company bought Illinois-based Purple Monkey Studios Inc. for $3.5 million to expand the company's presence into the Chicago area.