The Internet search giant will pay $125 million to purchase the company from ICG Group (NASDAQ:ICGE). Channel Intelligence claims to assist with $2 billion in annual e-commerce sales. Google did not reveal its plans for Channel, but the acquisition will likely support its struggling comparison shopping service, Google Shopping, The New York Times notes.
In an effort to overhaul Google Shopping, last year, the company began charging a fee to retailers that display merchandise on the service. Critics complain that Google Shopping limits the selection of items shown to consumers, with prominence given to retailers that paid up.
Google’s purchase of Channel Intelligence could aid retailers in structuring their marketing efforts with Google Shopping.
Google is also attempting to bolster its e-commerce platforms in a bid to compete with online retail giant Amazon (NASDAQ:AMZN). In recent years, Amazon has eclipsed search engines like Google as a starting point for consumers looking to buy online.
Last month, the Federal Trade Commission (FTC) ended its two-year investigation of the way Google displays search results without charging the company with any wrongdoing.
Shares of Google and ICG Group both rose almost 1% in Thursday morning trading.