ReachLocal is making its first purchase since going public last May, picking up DealOn, which offers daily deals of its own as well as white label deals for various publishers, including Zagat. DealOn has tried to differentiate its service from competitors like Groupon by targeting its deals at women in their 30s to 50s who are “affluent decision-makers,” the company says. DealOn also got some attention last summer when it launched a “deal exchange” so that daily deals sites could resell deals to publishers.
The acquisition makes sense for ReachLocal because the company specializes in helping small businesses advertise online but glaringly did not have a daily deals offering. In a statement, CEO Zorik Gordon says, “Much in the same way we bring SMBs’ Search, Display and Social Media spend to online publishers, we see a large opportunity to play the same, central role in the deals ecosystem by becoming the premier source of deals from local merchants to publishers.”
Over the summer, ReachLocal launched Bizzy, a new site that is designed to make it easy for local businesses to communicate with their customers (and vice versa). ReachLocal says it will now “enable Deals” on Bizzy so it can target “personalized deals to registered users from businesses that our proprietary algorithm recommends.”
As for the terms of the acquisition, ReachLocal says it’s paying roughly $10 million for DealOn.