Local.com Soaring 12% On Buyout
Local.com Corp. (NASDAQ: LOCM) shares are soaring today, gaining almost 12% on heavier than normal volume.
This morning, the company announced it had bought Screamin' Daily Deals for $12.5 million in cash, stock and debt.
“The acquisition of SMG serves our mission of connecting brick-and-mortar merchants with online consumers by extending our reach directly to thousands of local merchants in 14 markets. This transaction diversifies our revenues and provides us with a new way to engage consumers,” said Heath Clarke, Local.com chairman and CEO. “School Rewards is a terrific program that allows us to develop a more meaningful relationship with merchants and consumers by enabling them to contribute financially to their local schools. We look forward to working with the SDD team to accelerate their rapid growth while expanding the School Rewards program.”
“Local.com's existing commitment to local communities is consistent with our vision for School Rewards,” said Benson Kane, co-founder of SMG. “Local.com has a considerable array of assets that we believe we can leverage, including reach of over 20 million consumers each month through its flagship property plus a distribution network of over 1,400 regional media sites. We are very pleased to be joining forces with Local.com to deliver daily deals to an even broader audience of consumers, thereby expanding our ability to engage and serve even more local communities nationwide.”
At last check, shares of Local.com were up 46 cents to $4.25, a gain of 12.16% on 1.8 million shares. The average daily volume is nearly 800,000 shares.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.