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7/1/07 at 7:31pm
|Local.com Acquires PremierGuide
Thursday July 19, 7:00 am ET
Transaction Makes Local.com One of the Nation's Largest Providers of Online Local Business Directories
IRVINE, CA--(MARKET WIRE)--Jul 19, 2007 -- Local.com Corporation (NasdaqCM:LOCM - News), a leading local search engine, today announced the acquisition of PremierGuide Inc., one of the largest providers of online business directories to regional media publishers such as newspapers, TV and radio stations, and city portals.
Under the terms of the agreement Local.com acquired 100 percent of the outstanding shares of PremierGuide for cash consideration of approximately two million dollars. Founded in 2003 and based in Bellevue, Washington, PremierGuide will become a wholly-owned subsidiary of Local.com. Malcolm Lewis, PremierGuide's CEO, will become Local.com's vice president, private label. The acquisition makes Local.com one of the largest providers of syndicated, private-label local search and directories in the United States with a network of over 400 regional media websites.
PremierGuide is one of North America's largest and fastest growing providers of business directories to regional media publishers, with directories on over 350 sites including Community Newspaper Holdings, Inc. (CNHI), GateHouse Media, Inc. and Washingtonpost.Newsweek Interactive, the online publishing subsidiary of The Washington Post Company. The business directories can be easily added to any publisher's website and are designed to increase traffic to the site by providing SEO-friendly local business listings. These listings are subsequently indexed on the major search engines providing publishers with a new source of highly valuable organic search traffic to their sites. The search traffic is monetized by ads displayed alongside the business listings and these ad revenues are shared with the publisher.
"PremierGuide has built up a large publisher network with a product that serves a complementary segment of the regional media market to our LocalConnect™ platform. Excluding amortization expenses, this acquisition is expected to be immediately accretive and effectively double our organic traffic -- an important part of our growth and margin strategy," said Heath Clarke, Chairman and CEO, Local.com. "In addition, utilizing our superior search monetization, we expect additional fourth quarter revenue growth and margin contribution as we deploy new content and advertiser listings across the network."
"We are very pleased to be joining forces with Local.com and look forward to working with this exceptional team. Local.com's product development expertise, comprehensive local content and better monetization should provide immediate benefit to our customers," said Malcolm Lewis, CEO, PremierGuide. "We expect to deliver enhanced local search products to the regional media market nationwide."
Local.com plans to integrate PremierGuide's technology and product with the company's LocalConnect platform to provide an additional turn-key private-label solution to regional media. LocalConnect allows local newspapers, radio and television stations and yellow pages companies to incorporate Local.com's powerful local search technology into their websites via a customized, private label local business directory platform.
New and revised PremierGuide and LocalConnect contracts are expected to incorporate royalties for the licensing of Local.com's recently announced local search patent, number 7,231,405.
PremierGuide's unaudited revenue was approximately $800,000 for the last twelve months with net income of approximately $300,000 excluding salaries paid to founders. Monetization of the network using third-party ads was significantly lower than the monetization levels achieved on Local.com.
To experience Local.com go to: http://www.local.com.
Monday Aug.21'st is the buy day. My PTIE is still good. VII and ASTM sold at my stop losses. only down 4% on them for the week if you all had listened to sell. I give all details through my private messages. My followers now my status. PTIE and LOCM should make up for them big time this week!