June 27, 2016 — Web services firm ReachLocal announced this evening that it is being acquired by Gannett for approximately $4.60 a share in an enterprise deal totaling $156 million. ReachLocal provides website and digital marketing services to nearly 16,000 local businesses including car dealerships.
Gannett, which recently failed in its bid to acquire competitor Tribune Publishing, is buying ReachLocal to boost its digital capabilities. It expects the deal to add approximately $320 million in revenue. ReachLocal’s business model this year was feeling pressure as its first quarter revenue was down more than 20%. It’s stock price closed Monday at $1.66 but jumped in after hours activity to $4.55.