Barerra's firm buys stealth mode startup for $103M?

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From: Rohit Khare (
Date: Mon Jul 10 2000 - 23:53:32 PDT

o Analytic Software Firm Broadbase to Acquire Panop

MENLO PARK, Calif. -- Broadbase, a provider of analytic
and marketing infrastructure software, said it
entered into an agreement to acquire Panop, a developer
of real-time recommendation technology and software.
At the close of trading Friday, the deal was valued
at approximately $103 million. According to the
terms of the definitive agreement, Broadbase will
issue approximately 3.18 million shares of the company's
common stock in exchange for all of Panop securities.
Panop is backed by Selby Venture Partners.

Panop's merchandising engine is a revenue boosting technology based
on psychographic and demographic outlining which provides an enhanced
ability to sell, cross-sell and up-sell merchandise.




Measured performance in a real deployment, not a benchmark or ideal
scenario, include:

* Performance of 3X in clickthroughs relative to control

* Delivery rate of over 2 million recommendations per day,
spiking over 3800 per minute

* Typical response time under 10 ms per recommendation


Providing consumers with a high quality, personalized shopping
experience is a key challenge faced by online sellers. Traditional
approaches like search functionality, or categorized hierarchies to
facilitate consumer browsing, or a collection of seasonal or thematic
boutiques offer only limited success.


Panop's Smart Merchandising is a commercial software solution
purpose-built to meet the merchandising requirements of premier
e-commerce companies.

The merchandising engine provides a real-time optimization of the
online shopping experience by leveraging database assets to
effectively utilize premium real estate on the web.

The merchandising engine contours and matches users and products in
real-time based on psychographic and demographic profiles. Our
customers use Panop's technology to create and deliver
recommendations on-the-fly.

According to our customers, Panop's proprietary technology is
significantly ahead of currently marketed collaborative filtering and
rules based technologies. The differentiators include:

* High accuracy for matching people with evolving product lines

* Fast initialization using sparse data

* Low latency for delivering recommendations making it real-time


Panop's technology has been architected for easy implementation and
ensures success at highly scaled levels. The implementation is
structured to conclusively assess performance and reliability in a
commercial deployment.

Time to launch is minimal and customer resource requirements are
nominal. Performance reports generated provide valuable feedback to
the merchandising and technology departments.

9 5 5 A l m a S t r e e t , S u i t e B , P a l o A l t o ,
C A 9 4 3 0 1

2000 Panop, Inc.

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