Yahoo is to acquire IndexTools, a web analytics software firm that specialises in online marketing. The purchase will strengthen the firms' online marketing business, and should appeal to advertisers looking to run much more precise, targeted campaigns, the firms said.

Announcing the plans in a blog post, Bassel Ojjeh Head of Yahoo Strategic Data Solutions, said " [IndexTools] technology will give our customers tools for monitoring and analyzing websites and marketing campaigns, providing valuable insights into key metrics, traffic patterns and performance. And that means consumers are more likely to see marketing content that’s engaging and relevant."

Yahoo said that it would hurry to put the technology to work, adding the new capabilities to its own system so that users get improved insights and metrics for their online campaigns. Other additions, such as the ability to optimise web traffic performance, are expected to come later this year.

Other firms in the market were saddened by the news, suggesting that the take over would do more to limit web analytics than to improve it.

Neil Morgan, vice president for Channels and Marketing at Omniture, said, " once again the market has lost an independent web analytics tool and their customers a unbiased way to measure their results. IndexTools always tried to compete as ‘good enough’ web analytics at a very low price, so presumably Yahoo! will simply give it away and curtail its development, not great news for IndexTools customers who have been paying for their service."

The purchase was announced while Yahoo itself continues to wrangle over an agreed purchase price from Microsoft.