Mubasher: Gannett Co Inc on Thursday announced that the company has reached an agreement to buy Boston-based digital marketing software company WordStream Inc.
The agreement’s total cost amounted to $130 million, in addition to $20 million payable in 2019 and 2020 in case revenue goals are achieved, the publisher of USA Today said in a statement.
The acquisition is forecast to add around $55 million in digital marketing services revenues in the first year, in addition to $16 million in adjusted essentially net income with interest, taxes, depreciation and amortization (EBITDA), Gannett added.
“The deal is expected to boost earnings in its first full year after closing, which is expected in the second quarter,” MarketWatch reported, citing the firm's statement.
Gannett Company, which is a leading media and marketing company, also noted that it would finance the acquisition process through using its revolving credit facility.