SOURCE: ReachLocal

ReachLocal

September 14, 2009 18:00 ET

ReachLocal Buys Out Remaining Stake in ReachLocal Australia

Transaction Consolidates ReachLocal Australia Into ReachLocal's Fully Owned International Operations That Includes Canada and the United Kingdom

WOODLAND HILLS, CA and SYDNEY, AUSTRALIA--(Marketwire - September 14, 2009) - ReachLocal Inc., a global leader in local online marketing, announced today that it has completed a transaction securing the unowned interest in ReachLocal Australia from its joint venture partner, Netus Pty Ltd, an Australian venture capital company backed by News Corporation (NASDAQ: NWS) (NASDAQ: NWSA) (ASX: NWS) (ASX: NWSLV). With the full acquisition of ReachLocal Australia, ReachLocal now is the sole owner of all its international operations, which now includes operations in Canada, the United Kingdom and Australia.

"ReachLocal Australia, as our first international operation, demonstrated the global growth opportunity of ReachLocal's business model in technology, products and services," said Zorik Gordon, co-founder and CEO of ReachLocal. "Netus was a fabulous partner and provided us with their vast experience in product internationalisation, local market knowledge, management bandwidth and funding to confidently manage this rollout. We are excited that ReachLocal has grown to a position that allows us to integrate ReachLocal Australia as a fully owned operation with our other international businesses."

The joint venture was formed in December 2006 to establish ReachLocal's first international market that was followed by wholly owned international expansion in the United Kingdom and Canada in 2008. Since its founding, ReachLocal Australia has become one of the top Google AdWords™ and Yahoo!® search advertising resellers in Australia achieving approximately over 160 percent year-over-year revenue growth. ReachLocal Australia is headquartered in Sydney with offices in Melbourne and Brisbane.

"ReachLocal has a unique and strong business model, with extraordinary potential in one of the fastest growing markets in the world -- digital advertising for small- and medium-sized businesses," said Daniel Petre, founder and chairman of Netus. "The success of ReachLocal in Australia confirms the strength of the ReachLocal model and demonstrates its applicability to many markets outside the US. We are very proud of what the team in Australia has achieved and our contribution to the business and believe that they are on track to build a very significant business here in Australia."

Headquartered in Woodland Hills, California, ReachLocal Inc. is a privately owned corporation and currently has over 800 employees operating in more than 38 offices worldwide. With 2008 revenues topping US$146 million, ReachLocal has achieved over 146,000% growth in the four years since the end of its founding year in 2004.

About ReachLocal

ReachLocal brings order to the fragmented local Internet by connecting advertisers, publishers and creative solutions providers together on one platform. Wherever customers are online, ReachLocal helps businesses find them with the broadest reach of local digital media, a dedicated force of local Internet marketing consultants (IMCs), and proprietary technology that continually optimizes results. Founded in 2004, ReachLocal is a privately held U.S. corporation backed by funding from VantagePoint Venture Partners, Rho Ventures and Galleon Special Opportunities Partners Fund LP, and is led by Zorik Gordon, its co-founder and chief executive officer. Headquartered in Woodland Hills, California, ReachLocal has over 800 employees operating in more than 38 offices in the United States, Australia, Canada and the United Kingdom.

About Netus

Netus is an Australian technology investment company focused on bringing proven technology-based services and products to the Australian market. Netus's goal is to build sustainable, profitable businesses that deliver innovative and differentiated technology-based solutions to service real customer needs in the Australian marketplace. Netus is uniquely placed to build technology-based businesses with the financial backing of News Ltd and a significant pool of committed funds ready for investment. Netus's portfolio includes Allure Media, Downstream Marketing, Tantalus, Switchwise and Buyster. Netus is headed by its founder and chairman, Daniel Petre, and headquartered in Sydney, Australia.

Contact Information

  • Press Contact:
    In US
    David Glaubke
    Director of Corporate Communications
    ReachLocal, Inc.
    +0011-1-818-936-9908 Los Angeles office
    +0011-1-818-804-0383 Los Angeles mobile
    Email Contact

    In AUS
    Zoe Hibbert
    Burson-Marsteller for ReachLocal
    + 61 2 9928 1536 Sydney office
    + 61 427 432395 mobile
    Email Contact