to buy Cadabra for $250m plans to buy a comparison-shopping engine for $250m

On Monday, announced a deal to buy privately-held Cadabra for $8m cash and $242m (£145m) in stock, or almost 2.36 million shares at Monday's closing price. had a market cap of about $.8bn as of Monday's close.

Cadabra's product search and comparison technology will be integrated into's website, which features a search engine in which clients pay for higher rankings in search listings.

"Cadabra is a logical evolution for our search marketplace," CEO Jeffrey Brewer said. "Together we will be able to provide a more comprehensive and more valuable matching of buyers and sellers within our targeted, pay-for-performance model."

Executives from both companies portrayed the combination as a way for advertisers to improve customer targeting, and for shoppers to obtain better results from Web searches.

Shares of shot up earlier this month after a federal court issued an injunction barring Go Network from using a logo similar to's, but the latter's stock fell last week after a subsequent ruling that stayed the injunction pending an appeal. closed Monday at 106 1/8, down 2 1/8.

See techTrader for more technology investment news, plus quotes and research.