Web services provider Web.com
is to acquire online marketing company Yodle, Inc.(Yodle). Web.com, which has headquarters in Jacksonville, Florida, United States, was founded in 1997. The company offers a wide range of services including website development and hosting, online marketing, email marketing, Search Engine Optimization (SEO), eCommerce options and domain name registration.
The company has around 2,200 employees who cater to around 3.5 million customers, predominantly small and medium-sized businesses. Web.com’s brands include Network Solutions, Register.com and 1ShoppingCart. Its purchase of Yodle will strengthen Web.com’s digital marketing capabilities. Web.com will acquire 100% of the outstanding shares of Yodle in a deal that will cost in excess of $300 million.
Yodle, which has headquarters in New York, United States, was established in 2005. The company bills itself as an “all-in-one local internet marketing and advertising” solution. It has around 1,200 employees who cater to around 50,000 small businesses in the United States and Canada. In 2014 the company had revenues of $163 million.
Bringing Web.com and Yodle together will have numerous benefits for both companies. In particular, it will strengthen Web.com’s position as the United States’ leading provider of digital marketing solutions to small businesses, and significantly improve its revenue. In addition, the companies will be able to cross sell to a customer base totalling 3.4 million.
“The acquisition of Yodle is a natural complement to our strategy at Web.com,” explained Web.com’s Chief Executive Officer and President, David L. Brown in a press release. “Value added digital marketing solutions are a large and fast growing portion of the market where Web.com has developed a differentiated set of offerings. This market segment has been a strategic focus for us for several years, and the purchase of Yodle will solidify our position as a leading national provider in this space. We are pleased to be gaining a company with a strong track record of developing and selling vertically focused solutions that help small businesses attract new business and retain existing customers through cloud based marketing platforms.” Do you know of any other companies involved in acquisitions? Let us know the details. Add your comments below.