Incredimail Signs New Deal With Google

IncrediMail Ltd., an Israeli company develops e-mail client programs and personal

desktop software for the customer has signed two-year deal with Google Inc. The new agreement is effective by January 1, 2011. IncrediMails CEO, Josef Mandelbaum, stated that the new contract brings extended relationship and neighboring both companies to later be able to grow their existing business and a new cheap web hosting, aside from finding alternative areas of partnership. Besides that, Mr. Mandelbaum also mentioned that this agreement with Google designates the new era of consumers transparency because the companys new strategy is to invent easy, safe and useful products which will be initiated with building trust with customers. He concluded that after signing a deal with the global search market leader, IncrediMail is ready to establish its image as a leading media company mostly in consumer personal productivity category. This enthusiastic yet relieved statements can be understood considering Google once terminated its service to IncrediMail in 2008 which dropped more than 45% of the companys stock. Although in July 2009 IncrediMail announced that Google has signed a new agreement, but it was abolished before the due date. Such an intricate cooperation between these two companies. After this new deal signed, shares of IncrediMail Ltd. are trading up 5.6% at $7.50 per share on December 27, at afternoon trading session. Trading volume for IncrediMail Ltd. has been heavy, with 329,000 shares having been traded, nearly 5 times the daily average volume of 68,000 shares.

IncrediMail Ltd. is known as digital media company that builds, acquires and enhances downloadable consumer applications which currently employs 130 people, and has offices in Tel Aviv and New York. Since 2006, even before the change in the companys cheap webhosting: the 11-year-old company has been using Google AdSense, allowing it to share in advertisements revenue generated from users clicking on Google sponsored links, in response to a search query conducted across IncrediMail properties. In May 2009, IncrediMail reported that 70% of its revenue is originated from its search model. The companys award winning e-mail client product, IncrediMail Premium, is sold in over 100 countries in 10 different languages. Other products are a graphic add-on to instant messaging software called HiYo and a wallpaper and screensaver software named Magentic.

by: Edward Markson

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