The Kelsey Report® Advisory

ReachLocal’s Smart Play With SMBLive
Matt Booth , 3/3/2010

Summary: ReachLocal announced this week that it has acquired SMBLive, a company that specializes in a digital presence platform for small businesses. According to ReachLocal’s amended S-1 filing, it acquired SMBLive for US$8.8 million in cash and stock including the assumption of US$0.8 million of liabilities. BIA/Kelsey has been a fan of SMBLive, especially the Cloud Profile platform, for some time. ReachLocal has established itself by targeting high-spending traditional media advertisers and selling them performance-based digital advertising solutions through a direct sales force. In our view, this is a highly complementary acquisition for ReachLocal because it helps address one of its key weaknesses: the perception that it has a very high customer churn rate.

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