Gannett Completes Acquisition of WordStream
Gannett Co., Inc. announced that it closed the acquisition of WordStream, Inc. (“WordStream”), 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”
“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.
Robert added, “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.