Google grabs search start-up

SAN FRANCISCO (09/30/2003) - Google Inc. on Tuesday announced it has acquired Kaltix, a search technology start-up based in Palo Alto, Calif. The terms of deal were not disclosed.

Kaltix is a developer of context-sensitive and personalized search offerings designed to speed information search on the Web. The start-up had been in existence only since June of this year. Google plans to continue the development of Kaltix's search technologies, according to Google officials.

Google is moving to fortify its search offerings, as competition in the Web search arena has heated up. Yahoo Inc. is the process of acquiring paid search provider Overture Services Inc. The deal, which was first announced in July, is worth about US$1.63 billion.

In addition, Microsoft Corp. is aggressively ramping up its investment in a homegrown Internet search product. The company is currently developing a revamped MSN Search product, which the company plans to pit against Google. Microsoft's MSN Search currently uses search technology from Inktomi Corp., which was acquired by Yahoo earlier this year.

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