Irvine-based Local.com plans to acquire the assets of Boston-based ad firm Rovion Inc. for $1.5 million, plus an additional $7 million if certain milestones are achieved over the next three years.
Rovion, a subsidiary of Irvine-based Digital Post Interactive, sells, creates, delivers and tracks rich media advertising, such as animated and video platforms for regional and national brands.
The deal adds rich media display advertising to Local.com's product portfolio.
"National brands with local points of presence increasingly use display advertising, and rich media in particular, to more effectively target local consumers," said Heath Clarke, chairman and CEO of Local.com. "This acquisition broadens our product range ... thereby enabling us to serve a new market segment as well as to enhance and differentiate our product suite within our current markets."
Through the transaction, Local.com will acquire assets such as the Rovion Ad Management Platform – aka RAMP – a program that speeds up and simplifies the development, production and management of display ads. Rovion will become a wholly owned division of the local online media firm, and will be managed by Michael Sawtell, who will serve as senior vice president and general manager of Local.com's Sales and Advertiser Services arm.
Local.com's technology provides more than 20 million shoppers a month with search results for area businesses, products and services. The company powers more than 100,000 local websites.
"“Rovion is expected to increase monetization across the current Local.com network, as well as open up display inventory for local advertisers across Rovion’s display network,” said Clarke.
The deal is slated to close in the first half of the year.
Telogis: 'positioned for substantial growth'
Tech Coast Angels launches new fund structure
Fisker Automotive lands $150 million in funding