Local.com Buys Geo-Focused Ad Provider 360Octane

Hyperlocal

Directory network Local.com has acquired Octane360, a domain-based local ad firm that aims its services at small businesses, domain portfolio owners, agencies and publishers. Under the terms of the deal, Irvine, CA.-based Local.com will pay Octane360 $5 million in cash and stock with an earnout of up to $5.9 million. The earnout is tied to unspecified performance benchmarks within a two-year period following the closing.

This latest deal reflects the findings of media M&A activity over the past six months by investment banks The Jordan, Edmiston Group, Inc. and Petsky Prunier. The two companies found that deals involving marketing services have been particularly common lately. Secondly, while the number of deals is way up this year, the dollar amounts have been fairly small, with a few notable exceptions.

The deal also comes almost three years after Hearst sold its $6 million stake in Local.com after the directory company faced some challenges to its search patents. More in the release

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