(WEB HOST INDUSTRY REVIEW) — In its third customer acquisition since February 2009, local search site and network provider Local.com Corporation (www.local.com) acquired approximately 22,000 web hosting subscribers from telemarketing services provider LaRoss Partners (www.larosspartners.com) for approximately $2.6 million in cash.
On December 30, 2009, Local.com secured the web hosting customers bringing its total number of subscribers to more than 40,000. It was also given an option to purchase approximately 10,000 additional web hosting subscribers during the first quarter of 2010. The acquired customers, according to the company, pay approximately $35 per month for web hosting services, which are provided by a third party with which the company has contracted.
“This acquisition is expected to be immediately accretive,” Local.com chairman and chief executive officer Heath Clarke said in a statement. “This is our third subscriber acquisition since February 2009, and we ended 2009 much closer to our stated target of 50,000 small business subscribers. We anticipate additional future acquisitions in order to increase our small business subscriber base.”
The $2.6 million acquisition price tag will be reduced in the event any of the subscribers are not successfully transferred to the company. Local.com expects to complete the transfer of the subscribers during the first quarter 2010.
Local.com owns and operates a leading local search site and private label network in the US that uses patented technologies to provide some 20 million consumers each month with the most relevant search results for local businesses, products and services on Local.com and across more than 700 regional media sites.
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