Gannett To Acquire WordStream - Quick Facts

(RTTNews) - Gannett Co. Inc. (GCI) announced an agreement to acquire WordStream, Inc., a provider of cloud-based software-as-a-service (SaaS) solutions for local and regional businesses and agencies to optimize their digital marketing services campaigns. The purchase price is $130 million in cash, net of cash acquired, plus up to an aggregate $20 million earnout payable in 2019 and 2020 based on achieving certain revenue targets.

In the first year, WordStream is forecasted to contribute approximately $55 million in digital marketing services revenue and approximately $16 million of adjusted EBITDA. Gannett anticipates the transaction will be accretive in the first full year of operations and funded from borrowings under the company's revolver. The acquisition is expected to close in the second quarter.