Web.com Says It Will Acquire SMB Online Marketer Yodle

The acquisition enhances Web.com's lineup by adding vertical market products and expertise, office automation applications, and a successful franchise platform.

Internet service and online marketing provider Web.com revealed Feb. 11 that it will acquire digital marketing solutions maker Yodle for $300 million in cash.

The transaction is expected to close by the end of March, the company said.

Privately held, New York City-based Yodle is a provider of cloud-based, local marketing solutions for small businesses with up to 1,400 employees and more than $200 million in annual revenue. The company currently serves about 58,000 subscribers at an average revenue per user (ARPU) of approximately $300 per month. It had 1,200 employees and banked $163 million in revenue in 2014.

Publicly traded Web.com, which has been in business since 1997, was one of the earliest all-purpose providers of Internet services to small businesses in the form of subscription-based solutions. These include domains, hosting, Website design and management, search engine optimization, online marketing campaigns, local sales leads, social media, mobile products and e-commerce solutions.

Jacksonville, Florida-based Web.com said that adding the Yodle franchise will result in multiple strategic and financial benefits that include:

--accelerating Web.com's position and scale as a national provider of value-added digital marketing solutions to small businesses;

--improving Web.com's growth profile by adding higher growth revenue streams;

--adding complementary vertical market products and expertise, office automation business applications, and a successful franchise platform serving more than 9,000 locations; and

--creating new opportunities to upsell and cross-sell across a 3.4 million subscriber base.

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Chris Preimesberger

Chris J. Preimesberger

Chris J. Preimesberger is Editor-in-Chief of eWEEK and responsible for all the publication's coverage. In his 15 years and more than 4,000 articles at eWEEK, he has distinguished himself in reporting...