Gannett Company Inc. is acquiring a digital marketing software company WordStream. WordStream is getting purchased at $150 million, which will be split in two segments, 150 million payable in cash and an additional $20 million payable in 2019 and 2020 after achieving certain revenue targets.
WordStream has 279 employees and had revenue of $32.6 million in 2017. WordStream helps thousands of businesses in harnessing the power of Google, Facebook and Bing. The company along with its search marketing software also provides managed PPC and online marketing services to its clients.
“WordStream’s technology, extensive data and analytics capabilities together with an experienced executive team will bring tremendous value to Gannett’s expanding digital marketing services business,” said Robert Dickey, President and CEO Gannett.
Gannett has entered into this agreement which will expand their digital marketing services with its self-service platform and complement ReachLocal as part of USA Today Network Marketing Solutions.
In its first year, WordStream is predicted to contribute $55 million in digital marketing services revenue and approximately $16 million of adjusted EBITDA. Gannett with all its recent acquisitions of WordStream, ReachLocal and SweetIQ, will be able to provide a full spectrum of digital marketing services from Do-it-yourself (DIY) to managed service to any local business or agency.