Web.com Expands Subscribers with Online Marketer Yodle
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.
Web.com, located in Jacksonville, Florida, offers website and online marketing services to small businesses. The company says the purchase of Yodle will give it additional products, including cloud-based software.
“This market segment has been a strategic focus for us for several years, and the purchase of Yodle will solidify our position as a leading national provider in this space,” says Web.com CEO David Brown.
In other recent digital marketing deals, Accenture (NYSE: ACN) acquired PacificLink Group and Perficient Inc. (Nasdaq: PRFT) has purchased Enlighten.
J.P. Morgan Securities LLC (NYSE: JPM), Bank of America Merrill Lynch, Barclays and Cooley LLP are advising Web.com. Credit Suisse and Lowenstein Sandler LLP are advising LLP.