WordStream, the paid search software company that helps advertisers manage their PPC campaigns, has been acquired by the Gannett Company for $150 million. The deal is $130 million in cash, plus up to an aggregate $20 million earnout payable in 2019 and 2020 based on achieving certain revenue targets, according to the announcement.
WordStream was founded by Larry Kim, a high profile personality in the search marketing industry, back in 2007. In August of 2008, the company was able to secure a $4 million Series A investment from Sigma Partners, and in 2010, it secured a $6M Series B investment led by Egan Managed Partners. The company currently has over 2,000 customers. Larry stepped down as CEO a year or so ago, but he remained on the board of directors.
“This acquisition marks another critical milestone in Gannett’s digital transformation, enhancing our ability to support businesses and agencies in our local markets with the intelligent, data-driven marketing solutions they need to drive growth,” said Robert Dickey, president and chief executive officer of Gannett. “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.”
“WordStream is very excited about the opportunity this acquisition provides our customers and employees,” said Howard Kogan, chief executive officer at WordStream. “We see tremendous opportunity to leverage our companies’ combined data, analytics and marketing technologies to enhance the capabilities that WordStream brings to the DIY market, thereby accelerating our ability to drive further success and growth for our customers.”