Web.com Group Inc. (Nasdaq: WEB) has agreed to buy digital marketer Yodle for up to $342 million in cash. The purchase price consists of $300 million to be paid at closing at the end of the 2016 first quarter; $20 million at the first anniversary of close; and $22 million at the second anniversary. The buyer will fund the acquisition with debt, which it will pay down through free cash flow.
Yodle, based in New York, provides digital marketing services to small businesses, including social media and local search engine placement. The target has about 58,000 thousand subscribers and generated $208 million in revenue for 2015.