US media company Gannett (NYSE:GCI) has said that it has closed the purchase of online marketing and advertising company ReachLocal (NASDAQ:RLOC).
ReachLocal provides digital, advertising, marketing and other solutions to help businesses grow and better manage their operations, Gannett said in a press release. The company paid $4.60 per share in cash for ReachLocal.
Adding ReachLocal to its portfolio will allow Gannett to increase its digital revenues by about 50%. The company expects its digital revenues to reach $1 billion next year, Gannett CEO and president Robert Dickey said.
Following the completion of the acquisition, Raptor Merger Sub, a unit of Gannett, merged into ReachLocal, which will continue to operate under its own name.
The shares of ReachLocal will cease to trade on NASDAQ stock exchange on 10 August and will be delisted.