ReachLocal Acquires DealOn

ReachLocal, Inc. announced today that it has acquired DealOn Media, LLC, a local deals company. The acquisition with an approximately $10 million valuation makes it possible for ReachLocal to enter the local deals space with a fully functional deals business consisting of 18 U.S. markets, the DealOn.com group buying site, a white-label, co-branded deals platform and DealOn’s OfferEx deal exchange that makes it possible for other publishers and deal sites to offer or resell deals.

“The rapid growth in the local deals space further demonstrates the magnitude of the shift of dollars from offline to online. We believe that local deals are here to stay, will become ubiquitous, and will become an important way for publishers to monetize local users online,” said Zorik Gordon, Co-Founder and CEO of ReachLocal. “However, we believe the challenges of deal sourcing is the biggest gating factor limiting entry and success of additional players in this market. Much in the same way we bring SMBs’ Search, Display and Social Media spend to online publishers, we see a large opportunity to play the same, central role in the deals ecosystem by becoming the premier source of deals from local merchants to publishers.”

Founded in 2004, ReachLocal helps small and medium sized businesses acquire, maintain and retain customers via the Internet and offers a comprehensive suite of online marketing solutions, including search engine marketing.

DealOn founded in 2009, currently sources and manages deals for the group buying site, DealOn.com and several online media properties.

“We’re excited to combine our technology platform and emerging publisher network with ReachLocal’s significant expertise and reach into the SMB marketplace through its market leading digital sales force of Internet Marketing Consultants,” said Rich Razgaitis, General Manager of ReachLocal Deals. “We believe this combination will provide SMBs with another valuable outlet for acquiring new customers as part of an integrated online marketing budget and, at the same time, enable online publishers to source, brand and deliver local deals to their customers.”

We’re hoping to get more information on ReachLocal’s acquisition of DealOn and will bring it to you as soon as it’s available.

Source: Business Wire