MCLEAN, Va.--(BUSINESS WIRE)--Gannett Co., Inc. (NYSE: GCI) announced that it closed the acquisition of WordStream, Inc., a provider of cloud-based software-as-a-service (SaaS) solutions for local and regional businesses and agencies to optimize their digital marketing services campaigns. The closing of the transaction follows the receipt of all necessary regulatory clearances and approval of the transaction by WordStream shareholders.
“Today’s announcement is an important milestone as we further accelerate our digital transformation with the addition of WordStream,” said Robert Dickey, president and chief executive officer of Gannett. “The acquisition of WordStream immediately expands our addressable market with Do-it-Yourself (DIY) SaaS solutions. Gannett is now able to offer a full spectrum of digital marketing services to any local or regional business or agency, which, combined with our large, local sales presence, will allow us to grow our share of local digital advertising.”
As previously disclosed, the purchase price was $130 million in cash, net of cash acquired, plus up to an aggregate $20 million earnout payable in 2019 and 2020 based on achieving certain revenue targets. The acquisition was funded from a combination of cash on hand and borrowings under the Company’s revolver. In the first year, WordStream is forecasted to contribute approximately $55 million in digital marketing services revenue and approximately $16 million of Adjusted EBITDA. Gannett anticipates the transaction will be accretive in the first full year of operations. Gannett intends to update its full year guidance on its second quarter earnings call in early August to reflect the addition of WordStream.
About Gannett
Gannett Co., Inc. (NYSE: GCI) is an innovative, digitally focused media and marketing solutions company committed to strengthening communities across our network. With an unmatched local-to-national reach, Gannett touches the lives of more than 125 million people monthly with our Pulitzer-Prize winning content, consumer experiences and benefits, and advertiser products and services. Gannett brands include USA TODAY NETWORK with the iconic USA TODAY and more than 100 local media brands, digital marketing services companies ReachLocal and SweetIQ, and U.K. media company Newsquest. To connect with us, visit www.gannett.com.
About WordStream, Inc.
WordStream, Inc. provides software and services that help marketers maximize results from their online marketing efforts. WordStream’s easy-to-use software allows for more effective paid search and social campaigns with the 20-Minute Work Week, a customized workflow that guides marketers through steps that can greatly improve their AdWords, Bing, and Facebook campaigns, plus tools for call tracking, keyword optimization, and more. WordStream also offers an award-winning PPC tool, the AdWords Performance Grader, which evaluates users' Google AdWords accounts and provides valuable tips for improvement. WordStream holds premier partner status with Google and Bing ad networks. More information can be found at www.wordstream.com.
