Bridgeline acquires federal software provider

In what appears to be a move to gain more customers in the mid-Atlantic area, particularly in the federal government, Bridgeline Digital, Inc. announced this week that it has acquired selective assets of eMagination Network LLC and eMagination Intelligence Group. Woburn, Mass.-based Bridgeline produces the iApps suite of web content management software.

Founded in 1992, eMagination was acquired in 2003 by Dan Roche, eMagination's Chief Executive Officer. The Baltimore, Md., company has two groups. eMagination Network, LLC provides interactive technology services and web application development to the Washington D.C. and Baltimore area commercial markets., while eMagination IG, a wholly-owned subsidiary, provides technology solutions in projects with the United States Government, such as the Department of Health and Human Services, Department of Homeland Security, Department of Justice and Department of Defense.

eMagination IG, whose services are listed on the GSA schedule, will operate as a wholly-owned subsidiary of Bridgeline Digital. Roche has joined Bridgeline as Executive Vice President and General Manager for the Baltimore business unit and the Intelligence Group business unit. 

Bridgeline acquired the company for $4.3 million, including the purchase of approximately $250,000 of eMagination's net working capital (assumed accounts receivable, less assumed liabilities). The $4.3 million in selective assets purchased was paid for with a combination of cash, Bridgeline Digital common stock, and earn out, which will be paid when certain quarterly financial objectives are achieved over the next three years, the company said.

For more:
- see the press release 

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