Online sales climbed 24% year over year, while Best Buy’s overall sales were flat.
Local.com acquired SMG for $12.5 million in cash, stock and debt.
IRVINE, Calif.--(BUSINESS WIRE)--Local.com Corporation (NASDAQ: LOCM), a leading online local media company, today announced the acquisition of Screamin’ Media Group, Inc. (“SMG”), which operates Screamin’ Daily Deals (“SDD”), http://www.screamindailydeals.com, a leading daily deals business based in San Juan Capistrano, Calif.
Founded in early 2010, SDD has approximately 60 employees serving hundreds of thousands of subscribers with deals from thousands of local merchants in 14 markets throughout the U.S. including Los Angeles, Orange County, Salt Lake City and San Diego. SDD also recently launched travel deals at: http://getaways.screamindailydeals.com. SDD generated unaudited revenues of approximately $2.4 million in 2010 and $4.4 million during the first half of 2011.
SDD supports local communities with its School Rewards program, which allows consumers to donate 10 percent of SDD’s net proceeds from each deal to a school or non-profit organization chosen by the consumer. More than 700 local schools and non-profits benefit from this community program, which has donated over $400,000 to date.
SMG is now a wholly-owned subsidiary of Local.com and will relocate to Local.com’s corporate headquarters in Irvine, Calif. Local.com’s social buying business, Spreebird, will absorb SDD’s operations and SDD will assume the Spreebird brand. SDD’s three co-founders, formerly president, CEO and COO, will become Spreebird’s vice presidents of sales and marketing, product and operations, respectively. Spreebird will continue to be led by Malcolm Lewis, Local.com’s senior vice president and general manager, social buying.
“The acquisition of SMG serves our mission of connecting brick-and-mortar merchants with online consumers by extending our reach directly to thousands of local merchants in 14 markets. This transaction diversifies our revenues and provides us with a new way to engage consumers,” said Heath Clarke, Local.com chairman and CEO. “School Rewards is a terrific program that allows us to develop a more meaningful relationship with merchants and consumers by enabling them to contribute financially to their local schools. We look forward to working with the SDD team to accelerate their rapid growth while expanding the School Rewards program.”
“Local.com’s existing commitment to local communities is consistent with our vision for School Rewards,” said Benson Kane, co-founder of SMG. “Local.com has a considerable array of assets that we believe we can leverage, including reach of over 20 million consumers each month through its flagship property plus a distribution network of over 1,400 regional media sites. We are very pleased to be joining forces with Local.com to deliver daily deals to an even broader audience of consumers, thereby expanding our ability to engage and serve even more local communities nationwide.”
Under the terms of the agreement, Local.com acquired SMG for $12.5 million in cash, stock and debt, with the opportunity for the SMG shareholders to earn up to an additional $20 million if certain financial performance criteria are met during the two-year period following the closing.
All SDD revenue numbers are unaudited and are subject to change.
Local.com Corporation (NASDAQ: LOCM), a leading online local media company, enables brick-and-mortar businesses to connect with online customers using a variety of digital marketing products. The company reaches more than 20 million consumers each month on the flagship Local.com website, 1,400 regional media sites and more than 100,000 geo-category websites. The company distributes daily deals to hundreds of thousands of email subscribers in 14 markets via Spreebird, rich media ads via Rovion.com, and real-time product inventory information from more than 60,000 retailers nationwide via Krillion.com. To advertise, or for more information, visit: http://www.local.com/.