Local business directory and search engine Local.com this morning announced the acquisition of the assets of OCTANE360, a technology startup based out of Los Angeles that provides domain-based local advertising solutions to small businesses, domain portfolio owners, agencies and channel partners.
Under the terms of the agreement, Local.com is paying $5 million in cash and stock with an earnout of up to $5.9 million if certain performance criteria are met in the two-year period following the closing.
OCTANE360 will become a wholly-owned division of Local.com Corporation.
Founded in 2008, OCTANE360 offers a number of services to its client base, which consists mostly of small businesses and agencies, on a direct, wholesale or private label basis. The services it offers include targeting and registration of geo-category based local website domains (examples), website creation, hosting and management, an ad exchange system to manage the selection and deployment of ad inventory and a content marketplace for the management of geo-category content.
Following the acquisition, OCTANE360 will be managed within Local.com’s Sales & Ad Services business unit, and its products and services will be utilized by the company’s Owned & Operated and Network business units. OCTANE360 CEO Adam Rioux will become Local.com’s vice president, leading the newly added division.
Finally, Local.com also announced the closing of a $30 million revolving credit facility with Silicon Valley Bank. The facility, secured by all of the company’s assets, is expected to be used primarily for general working capital and to fund more ‘strategic growth initiatives’.