WOODLAND HILLS, Calif.--(BUSINESS WIRE)--ReachLocal, Inc., a leader in local online marketing solutions for small- and medium-sized businesses (SMBs), announced today that it has acquired DealOn Media, LLC, a local deals company. The acquisition, with a value of approximately $10 million, provides ReachLocal with a turnkey platform to strategically enter the local deals space. With DealOn, ReachLocal acquires a fully functional operating local deals business that operates in 18 markets across the U.S., in addition to a comprehensive product suite including the DealOn.com destination site, a full white-label and co-branded deals platform allowing online publishers to offer deals to their customers, and the recently launched OfferEx deal exchange which enables other deal sites and publishers to supply and/or resell deals through a plug-and-play exchange.
“The rapid growth in the local deals space further demonstrates the magnitude of the shift of dollars from offline to online. We believe that local deals are here to stay, will become ubiquitous, and will become an important way for publishers to monetize local users online,” said Zorik Gordon, Co-Founder and CEO of ReachLocal. “However, we believe the challenges of deal sourcing is the biggest gating factor limiting entry and success of additional players in this market. Much in the same way we bring SMBs’ Search, Display and Social Media spend to online publishers, we see a large opportunity to play the same, central role in the deals ecosystem by becoming the premier source of deals from local merchants to publishers.”
DealOn was founded in 2009 and currently sources and manages deals for its DealOn.com site and for several online media properties. “We’re excited to combine our technology platform and emerging publisher network with ReachLocal’s significant expertise and reach into the SMB marketplace through its market leading digital sales force of Internet Marketing Consultants,” said Rich Razgaitis, General Manager of ReachLocal Deals. “We believe this combination will provide SMBs with another valuable outlet for acquiring new customers as part of an integrated online marketing budget and, at the same time, enable online publishers to source, brand and deliver local deals to their customers.”
About ReachLocal, Inc.
ReachLocal, Inc.'s (NASDAQ: RLOC) mission is to help small- and medium-sized businesses (SMBs) acquire, maintain and retain customers via the Internet. ReachLocal offers a comprehensive suite of online marketing solutions, including search engine marketing (ReachSearch™), Web presence (ReachCast™), display advertising (ReachDisplay™) and remarketing, online marketing analytics (TotalTrack®), and our out-of-the-box assisted chat service (TotalLiveChat™), each targeted to the SMB market. ReachLocal delivers this suite of services to SMBs through a combination of its proprietary technology platform and its direct, "feet-on-the-street" sales force of Internet Marketing Consultants and select third party agencies and resellers. Bizzy™, a personalized local business recommendation engine, and DealOn™, a local deals company, are wholly owned subsidiaries of ReachLocal. ReachLocal is headquartered in Woodland Hills, CA, with offices throughout North America and in Australia, the United Kingdom and Germany.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements. These statements are based on the current expectations or beliefs of management of ReachLocal and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to (1) changes in economic, business, competitive, technological and/or regulatory factors, (2) failure to compete successfully in a highly competitive and rapidly changing marketplace, (3) failure to retain key employees, and (4) other factors affecting the business operation of ReachLocal. More detailed information about these and other factors that may affect current expectations may be found in filings by ReachLocal with the U.S. Securities and Exchange Commission. ReachLocal is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.