Loren Baker reports on Local.com’s intended acquisition of Internet yellow pages soUno, which has 13,000 advertisers.
From the release:
Local.com Corporation (NASDAQ: LOCM) today announced that it has entered into a letter of intent to acquire soUno Directional Media Solutions, LLC, a provider of online yellow pages advertising to small businesses, for $2.25 million in cash plus $6.75 million in Local.com common stock (valued based on the 20-day trailing average up to January 19, 2007). In addition, certain soUno employees are eligible to earn up to $4.5 million in cash and common stock over the two-year period following the closing based upon the achievement of specific financial objectives.
soUno markets online yellow pages advertising to small businesses nationwide. soUno’s 13,000 local advertisers each pay an average of approximately $300 per year for inclusion in search results on www.souno.com. soUno has local exchange carrier (LEC) billing capabilities in 50 states, giving advertisers the option of paying their online advertising fees with their phone bills. Based in Tulsa, Oklahoma, soUno has approximately 20 employees.
Local.com buys traffic and, more importantly, a $3.9 million annual revenue stream with soUno. The billing capability may also turn out to be a significant strategic asset.
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Local.com promotes its traffic growth.
January 25, 2007 at 2:06 am |
[...] its data. And local.com – well they seem to have already started the acquisition game, picking up soUno to build up its revenue [...]