Gannett completes acquisition of ReachLocal
Gannett Co. Inc. announced Tuesday it has completed the acquisition of digital marketing firm ReachLocal for $156 million.
The McLean-based company, which owns USA Today and newspapers in more than 120 markets, said the acquisition will increase Gannett’s digital revenues by 50 percent and approach $1 billion in 2017.
“We expect that in its first full year of operations following the acquisition, ReachLocal will be approximately neutral to our earnings per share, and slightly accretive in the second full year,” Robert Dickey, Gannett president and CEO, said in a statement.
Gannett bought the company for $4.60 per share.
Raptor Merger Sub Inc., a Gannett subsidiary, will merge with ReachLocal.
Gannett has made several acquisitions since the company divided its print and television businesses in 2015.
Earlier this year, Gannett purchased Journal Media Group’s 15 daily newspapers. Last year, the company purchased Romanes Media Group, a newspaper chain with publications in Scotland and Northern Ireland, and the remaining interest in a Texas-New Mexico Newspapers Partnership, which it previously only partly owned.
The New York Post reported last week that Gannett was preparing a formal takeover bid of Tribune Publishing Co., now known as Tronc, which rejected a $864 million bid in May.