Today Wordstream was acquired for $150 million by Gannett. This was confirmed by it’s founder Larry Kim via Linkedin. Kim started Wordstream when he was in his 20’s and grew it till around a year or so ago when he exited to start Mobile Monkey.

Here is a little more information about Wordstream being acquired by Gannett. The purchase was for $130 million cash, net of cash acquired, plus $20 million earn-out in 2019 and 2020 based on revenue targets. Meaning this deal is more like $130 million plus some aggressive goals to have a higher earnout over the coming years.

This acquisition is a good win for Gannett that will lend a hand to it’s existing digital marketing services ReachLocal and SweetIQ.

Robert Dickey, president and chief executive officer of Gannett, says:

”WordStream’s technology, extensive data and analytics capabilities together with an experienced executive team will bring tremendous value to Gannett’s expanding digital marketing services business.”

The McLean, Va.-based company Gannett recently reported a year-to-year revenue decline of 7.2 percent for the first quarter at properties it owned both this year and last. It operated at a small net loss of $400,000, essentially break-even on revenues of $723 million. Last year, the company reported a net loss of $2.08 million, or 2 cents per share, in the same period.

Gannett stock is up nearly 2% or over $11.64 for the day.

Gannett-Stock-on-day-of-Acquasition-of-Wordstream

In the first year, WordStream is forecasted to contribute approximately $55 million in digital marketing services revenue and approximately $16 million of Adjusted EBITDA.

Wordstream has 279 employees and had $32.6 Million in revenue in 2016.

Wordstream-Inc-Profile-2017

WordStream will continue to be headquartered in Boston, MA.

Brad Anderson

Brad Anderson

Editor In Chief at ReadWrite

Brad is the editor overseeing contributed content at ReadWrite.com. He previously worked as an editor at PayPal and Crunchbase. You can reach him at brad at readwrite.com.