Local.com Corporation, a local search site and network, has acquired the assets of OCTANE360, a technology startup providing domain-based local advertising solutions to small businesses, domain portfolio owners, agencies and channel partners.
Under the terms of the agreement, Local.com acquired the assets of OCTANE360 for $5 million in cash and stock with an earnout of up to $5.9 million if certain performance criteria are met in the two-year period following the closing. Founded in 2008 and based in Los Angeles, California, OCTANE360 will become a wholly-owned division of Local.com.
“This transaction represents a significant expansion of Local.com’s product suite and technology platform, allowing us to manage the scaled acquisition, creation and deployment of geo-category targeted small business domains,” said Heath Clarke, Local.com chairman and CEO. “Furthermore, Octane Experts’ content marketplace allows for the scaled procurement of proprietary, curated content, thereby enhancing the SEO value of local domains under our management.”
Local.com anticipates that the deployment of content across proprietary geo-category local domains will result in an increase in organic O&O traffic, a strategic objective of the company. The company also expects that the OCTANE360 product suite will open the domain portfolio industry as a potentially valuable new market for the Local.com network. OCTANE360 currently generates revenues from various ad formats including subscription advertising, performance and display ad units.
“We are excited to join forces with Local.com,” said Rioux. “We feel that our combined assets of platform, products, services, reach and relationships create a compelling offering to serve the growing local search market. We look forward to becoming part of the Local.com team while quickly ramping our business.”
The company has also opened a $30 million revolving credit facility with Silicon Valley Bank. The facility, which is secured by all of the company’s assets, is expected to be used primarily for general working capital and to fund strategic growth initiatives.
Location: USA, Irvine, CA