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Modern media and marketing solutions giant Gannett Co., Inc. announced today that they would be acquiring WordStream, a cloud-based software-as-a-service provider. This team-up is a direct representation of Gannett’s desires to bring more tech, data, and analytics capabilities to their suite of digital marketing services. In a press release, Gannett president and CEO Robert Dickey states,
“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.”
Gannett, headquartered in Tysons Corner VA near McLean, owns multiple assets including USA TODAY, the Indianapolis Star, over 160 local news brands in the U.K., and digital marketing company Reach Local. The company, founded by Frank Gannett in 1923, has a rich and longstanding legacy.
Born as an outgrowth of the Elmira Gazette, a newspaper founded by Frank Gannett himself, Gannett Co., Inc. quickly became a formidable chain, securing over 79 newspapers by 1979.
Today, Gannett reaches millions of people each week through a suite of affiliated digital, mobile, and print products across hundreds of print, digital, radio and television brands.
By acquiring WordStream, Gannett will be able to boost their digital marketing offerings, expand their market, and further drive success for their vast client base.
According to the press release,
“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. The transaction builds upon Gannett’s existing data-driven digital marketing services, ReachLocal and SweetIQ.
Jefferies LLC acted as exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Gannett in connection with this transaction. Houlihan Lokey acted as exclusive financial advisor and Gesmer Updegrove acted as legal advisor to WordStream in connection with this transaction.”
WordStream CEO Howard Kogan comments,
“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.”
Since 2007, WordStream has transformed from a keyboard software tool developer to a highly sought after online marketing destination. WordStream is a premier Google Partner and has forged partnerships with some of the biggest players in PPC and social media. They have advised companies like Facebook, Bing, Instagram, and Google Adwords.
WordStream has notably implemented their 20-Minute Work Week customized workflow, which guides marketers through steps they can take to improve their AdWords, Bing, and Facebook Campaigns, and tools for call tracking, keyword optimization and more.
WordStream also provides the AdWords Performance Grader, an acclaimed PPC tool which evaluates users' Google AdWords accounts and gives them improvement tips.
