Web.com Group Inc. on Thursday announced a $342 million agreement to buy Yodle, a New York-based company that provides local online marketing solutions for small businesses.
In a news release, CEO David Brown said the acquisition will be a natural fit for Jacksonville-based Web.com, which provides website development services for small businesses.
“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,” he said.
Yodle will add about $200 million in annual revenue to Web.com, which reported 2015 revenue of $559.4 million. Web.com expects to complete the deal by the end of the first quarter and said it would be accretive to its earnings with the first year.
Web.com also on Thursday reported adjusted fourth-quarter earnings of 66 cents a share, 2 cents higher than last year. The earnings also beat analysts’ forecasts, which ranged from 62 cents to 65 cents, according to Thomson Financial.
Web.com plans to buy Yodle with $300 million in cash paid at closing and additional payments of $20 million and $22 million over the next two years.