Gannett Completes Acquisition of WordStream
03 July 2018 - 6:15AM
Business Wire
Gannett Co., Inc. (NYSE: GCI) ("Gannett" or "company" or "we" or
"our") today 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,” 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.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include all statements that are
not historical facts. Such statements include, but are not limited
to, Gannett’s ability to integrate WordStream’s operations and
employees with Gannett’s existing business, and economic and other
uncertainties affecting the digital advertising industry generally.
The words "believe," "expect," "estimate," "could," "should,"
"intend," "may," "plan," "seek," "anticipate," "project" and
similar expressions, among others, generally identify
forward-looking statements, which speak only as of the date the
statements were made and are not guarantees of future performance.
The matters discussed in these forward-looking statements are
subject to many risks, trends, uncertainties, and other factors
that could cause actual results to differ materially from those
projected, anticipated, or implied in the forward-looking
statements. Where, in any forward-looking statement, an expectation
or belief as to future results or events is expressed, such
expectation or belief is based on the current plans and
expectations of our management, is expressed in good faith and is
believed to have a reasonable basis. However, there can be no
assurance the expectation or belief will result, be achieved or be
accomplished. Whether or not any such forward-looking statements
are in fact achieved will depend on future events, some of which
are beyond our control. Except as may be required by law, we
undertake no obligation to modify or revise any forward-looking
statements to reflect new information, events, or circumstances
occurring after the date of this press release. Factors, risks,
trends, and uncertainties that could cause actual results or events
to differ materially from those projected, anticipated, or implied
include the matters described under the heading "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K for the
year ended December 31, 2017 and in our other SEC filings.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180702005871/en/
For investor inquiries, contact:Gannett Co., Inc.Stacy
CunninghamVP, Financial Planning & Investor
Relations703-854-3168investors@gannett.comorThe Blueshirt
GroupBrinlea Johnsoninvestors@gannett.comorFor media inquiries,
contact:Gannett Co., Inc.Amber AllmanVice President, Corporate
Events & Communications703-854-5358aallman@gannett.com
New Gannett (NYSE:GCI)
Historical Stock Chart
From Apr 2024 to May 2024
New Gannett (NYSE:GCI)
Historical Stock Chart
From May 2023 to May 2024