#ReachLocal, Inc. ( $RLOC) Trading at $4.54 Up 2.85(168.80%)- #Gannett
to Acquire ReachLocal for $4.60 per share
Point Roberts, WA, Delta BC – June 28, 2016 –
Investorideas.com, a global news source and investor resource covering actively
traded sectors reports on trading for ReachLocal, Inc. (RLOC) following news of
the acquisition. The stock is Trading at
$4.54 Up 2.85(168.80%) as of 12:45PM EDT- making it the top advancer on NASDAQ
markets.
Gannett Co., Inc. (GCI) and ReachLocal, Inc. (RLOC)
report on the execution of a definitive merger agreement whereby Gannett would
acquire the outstanding shares of ReachLocal, Inc., for $4.60 per share in
cash, via a tender offer. This represents a 188% premium to the unaffected
closing price on Friday, June 24, 2016, and a total enterprise value of
approximately $156 million. The transaction has been unanimously approved by the
Boards of Directors of both companies and is expected to be completed in the
third quarter of 2016. Gannett expects this transaction to be approximately
neutral to earnings per share in its first full year and modestly accretive in
its second full year.
Robert Dickey, Gannett president and chief
executive officer said, “The acquisition of ReachLocal accelerates Gannett’s
digital growth strategy, adding more than $320 million of annual digital
revenue, the best digital marketing solutions technology in the market, and an
outstanding and well-respected management team to Gannett’s digital business.
ReachLocal’s focus on local small and medium sized businesses aligns well with
Gannett’s local-to-national strategy and extends our reach into new local markets.
This transaction represents an important step as we continue to transform our
business to meet the changing needs of consumers and advertisers in today’s
digital world. We are excited to welcome the talented ReachLocal team to
Gannett and look forward to working with them to drive digital growth and
create value for our stockholders.”
Under the terms of the agreement, a subsidiary of
Gannett will commence a tender offer for all outstanding shares of ReachLocal
for $4.60 per share in cash, which will remain open for at least 20 business
days. The transaction is subject to customary closing conditions, including the
expiration of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, and there being validly tendered and not
withdrawn in the tender offer a majority of the outstanding ReachLocal shares.
Shortly following the closing of the tender offer, in a second-step merger that
will not require stockholder approval, Gannett will acquire all remaining
ReachLocal shares.
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