By: E&P Staff
Local search site and network Local.com Corp., Irvine, Calif., acquired the assets of OCTANE360, a technology start-up providing domain-based local advertising solutions to small businesses, domain portfolio owners, agencies and channel partners.
Local.com acquired OCTANE360’s assets for $5 million in cash and stock with an earnout of up to $5.9 million if certain performance criteria are met in the two years following the closing. Founded in 2008, Los Angeles-based OCTANE360 will become a division of Local.com.
“This transaction represents a significant expansion of Local.com’s product suite and technology platform, allowing us to manage the scaled acquisition, creation and deployment of geo-category targeted small business domains,” Local.com Chairman and CEO Heath Clark said in a statement.
According to Local.com, OCTANE360 can be used to offer large-scale targeting and registration of geo-category-based local website domains, small-business and geo-category website creation, hosting and management, an ad exchange to manage selection and deployment of ad inventory across all Local.com-owned and operated and network sites, as well as third-party and directly owned domain portfolio properties, and a content marketplace for managing geo-category content written for advertising customers or Local.com’s directly owned portfolio properties.
OCTANE360 will be managed within Local.com’s sales and ad services unit, and its products and services will be used by the company’s owned-and-operated and network units. OCTANE360 CEO Adam Rioux will lead the OCTANE360 division as a Local.com vice president.
Local.com also announced that a $30 million revolving credit facility with Silicon Valley Bank, secured by all company assets, is expected to be used primarily for general working capital and to fund strategic growth.
Local.com technologies provide more than 20 million consumers each month with relevant search results for local businesses, products and services on Local.com and over 800 partner sites. It owns or manages over 40,000 geo-category domain sites.