Yahoo to buy Inktomi

Inktomi says it has signed an agreement with Yahoo in which Yahoo will acquire Inktomi for a purchase price of $1.65 per share in cash. The transaction reflects an aggregate purchase price of approximately $235 million.

Inktomi reports it recently focused its assets exclusively on the Web search space. The company also has made a number of improvements in its overall Web search capability, including increased relevance, a fresher and larger index, paid inclusion, an XML interface and features targeted at understanding user intent for interactions on the Web.

In November, Inktomi sold its enterprise search solution to Verity for approximately $25 million in cash.