Banks.com, an operator of financial services focused media properties, has acquired FileLater.com, a leader in the online tax extension industry and a portfolio of tax-related Internet domains.
“The acquisition of FileLater and its portfolio of tax-related domain names fits like a glove with our go-forward strategy and makes us a dominant player in the online tax extension industry,” said Dan O’Donnell, President and Chief Executive Officer of Banks.com, Inc. “In addition to providing us with a proprietary platform, we will now own three of the top 10 URL’s in the Google algorithmic search listings for the term ‘tax extension,’ which is among the highest converting of all tax-related terms. This additional organic traffic, together with the traffic we generate through IRS.com, should generate meaningful revenue in the upcoming 2011 tax season.”
The Company also secured $600,000 in financing through a sale/leaseback transaction with Domain Capital of Fort Lee, N.J., and an additional $100,000 in debt from the Company’s CEO. “We are very pleased that we were able to secure additional working capital as well as the funds necessary to complete this acquisition,” continued Mr. O’Donnell. “This is a critical step in our evolution towards a more sustainable model in online personal finance and my investment in the Company to help facilitate our acquisition of FileLater is indicative of my personal commitment to achieving that goal. In addition, the sale/leaseback transaction has allowed us to monetize an intangible asset on our balance sheet while we continue to enjoy the upside value of those assets and all without the need to dilute our current shareholders.”
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