KU spinoff sold to Intelliseek

Cincinnati,Ohio (04-20-2000)

From Lawrence Journal World
By Richard Brack

ProFusion, the pioneering Internet search engine developed at Kansas University, has been purchased by Intelliseek Inc.

The deal, for undisclosed terms, completes a successful spinoff of university-developed technology into the private sector.

"It's absolutely a success story," said Tim Johnson, executive director at KU's Information and Telecommunication Technology Center, which supported ProFusion Inc.'s development.

Under the cash and stock deal with Cincinnati-based Intelliseek, ProFusion's office in Ann Arbor, Mich., will be shut down, said Susan Gauch, chief technical officer and co-founder of ProFusion.

"The Kansas office will stay open for the foreseeable future as sort of a research wing," she said. There are six employees at ProFusion's Lawrence office, 1617 St. Andrews Drive.

To privately held Intelliseek, ProFusion provides a much-needed Web search portal and a loyal audience of users. It claims 3 million users and 600,000 unique visitors each month. But the search system also was important.

"They didn't just want the end users, but also the technology," Gauch said. "They wanted the things that differentiate them in the marketplace."

ProFusion.com, which went online in 1995, was the last of the original metasearch engines to find a buyer, Gauch said. Metasearch provides users with a group of Web search engines -- such as Yahoo!, HotBot and AltaVista -- simultaneously.

MetaCrawler, developed at the University of Washington about the same time ProFusion was being developed at KU, was purchased in 1997 by Go2Net for $100,000. Seattle-based Go2Net had to pay considerably more -- $55 million -- last August when it acquired Dogpile, another metasearch engine.

SavvySearch, developed at Colorado State University, was sold in October to Cnet Inc. for $22 million in cash and stock.

Referring to the recent sales, Mahendra Vora, president and chief executive officer of Intelliseek, said, "I wouldn't pay more than that. I think we got a very good deal" for ProFusion.

No price was disclosed earlier this year when KU's ITTC transferred ProFusion technologies to ProFusion Inc. At the time, co-founder Greg Merriman described the company's payment to ITTC as substantial -- "in six figures."

Johnson, of ITTC, declined to comment on terms of that deal or the latest one.

ITTC is a nonprofit regional center for developing information and telecommunications technologies.

"The whole concept is that there's a lot of great knowledge and technology developed at the universities," Johnson said. "One of the goals is trying to transition that out to industry so that it's utilized."

Merriman said that would happen with ProFusion.

"Intelliseek is the leader on the client side and ProFusion has the best technology on the server side," he said. "By offering both client and server solutions ... the large and growing Internet search market will be better served."

For more information, contact ITTC.

Current News | More News | ITTC Newsletter

Partner with ITTC

The Information and Telecommunication Technology Center at the University of Kansas has developed several assistance policies that enhance interactions between the Center and local, Kansas, or national companies. 

ITTC assistance includes initial free consulting (normally one to five hours). If additional support is needed, ITTC will offer one of the following approaches: 

Sponsored Research Agreement

Individuals and organizations can enter into agreements with KUCR/ITTC and provide funds for sponsored research to be performed at ITTC with the assistance of faculty, staff and students.

Licensing and Royalty/Equity Agreement

An ITTC goal is the development of investment-grade technologies for transfer to, and marketing by, local, Kansas, and national businesses. To enhance this process, the Center has developed flexible policies that allow for licensing, royalty, and equity arrangements to meet both the needs of ITTC and the company.

Commercialization Development

Companies with a technology need that can be satisfied with ITTC's resources can look to us for assistance. We can develop a relationship with interested partners that will provide for the development of a technology suited for commercialization.

ITTC Resource Access

ITTC resources, including computers and software systems, may be made available to Kansas companies in accordance with the Center's mission and applicable Regents and University policies.

ITTC Calendar
There are no upcoming events at this time.