Local.com Corp., which operates a search engine that provides local results, said this week it will buy Rovion Inc., a company that sells animated and video advertising services.
Local.com says it will pay at least $1.5 million for the company, a subsidiary of DigitalPost Interactive Inc., though the price could increase to $7 million if unspecified performance criteria are achieved within three years. Local.com expects the deal to close within three months.
"National brands with local points of presence increasingly use display advertising, and rich media in particular, to more effectively target local consumers,” says Heath Clarke, Local.com chairman and CEO. “This acquisition broadens our product range to include rich media display advertising, thereby enabling us to serve a new market segment as well as to enhance and differentiate our product suite within our current markets.”
Local.com says it will acquire the following from Rovion:
• A rich media advertising management platform.
• A suite of advertising products and services to be offered to local media companies and ad agencies.
• Specialized rich media advertising technology.
• Direct advertising agency and brand advertiser relationships.
• A network of production studios.
• The Rovion Ad Management Platform, technology that automates the creation, production, management and serving of rich media ad units.
Rovion is based in Boston and will become a division of Local.com. Michael Sawtell, a Local.com senior vice president, will manage the division.