SOURCE: TheDirectory.com, Inc.
TAMPA, FL--(Marketwire - Aug 9, 2011) - TheDirectory.com, Inc. (PINKSHEETS: EYSM) today announced that it has signed an asset purchase agreement, allowing it to close the largest acquisition in its history from privately held C2BInteractive, LLC. The acquisition of www.123Chiropractors.com is expected to more than double the revenue base of TheDirectory.com and make the combined network of Internet properties the largest local Chiropractor directory network in the United States.
TheDirectory.com Founder and CEO Scott Gallagher commented, "This really is a historic day for our Company. In addition to the increased revenue and profit impact this acquisition is expected to have on our Company, the deal provides us with an industry leading technology platform we can use to dramatically expand our business into new vertical markets under the 123 brand. As part of the transaction, the management team of 123Chiropractors.com has agreed to stay on in a consulting capacity for one year to assist with the integration of www.123Chiropractors.com and the related technology assets into our business. The deal includes an earn-out provision after one year based on the business achieving a set of revenue metrics to further insure the success of the acquisition."
Gallagher continued, "I'm especially pleased with the structure of this deal on the heels of our $2.3 Million debt reduction plan that allows us to close the transaction without the issuance of any convertible securities or further dilution to existing shareholders. The acquisition is being funded with management participation and will increase our asset base by approximately $700K. As a result of closing the acquisition, TheDirectory.com network will become the leading US local directory player in two growing health related categories: Podiatry and Chiropractic. As mentioned earlier, we have specific plans to leverage the 123 brand and new platform to launch several additional local vertical markets in the coming months. We'll review our plans in more detail on a conference call with stockholders following completion of the acquisition integration process."
According to the Yankee Group, the U.S. online advertising market will reach $50.3 billion in revenue by 2011, more than doubling 2007 levels. This 24 percent annual growth trend is expected to continue as brands increase their online ad spending and publishers improve ad targeting, inventory and yield management.
The Internet accounts for approximately 20 percent of overall media consumption in the U.S., but currently advertisers invest only 7.5 percent of their budget online. As a result, there is great potential for marketplace growth as advertisers bridge the gap. By 2011, nearly 25 percent of all media consumption will be online, drawing 15 percent of the advertising dollars.
About TheDirectory.com, Inc.
TheDirectory.com, is a local Internet media network that owns and operates locally targeted category specific search destinations including several which are leaders in their vertical markets including www.Podiatrists.com. In addition to www.TheDirectory.com the network includes www.Chiropractor.net, www.Therapists.net, www.DentistAppointments.com, www.Dietitians.net and many others. For more information visit the Company's Investor web site www.TheDirectory.tv. Review the Company's other filings on www.OTCMarkets.com.
Certain statements contained herein are "forward-looking" statements (as defined -- Private Securities Litigation Reform Act of 1995). TheDirectory.com, Inc. cautions that the statements made in this press release constitute forward-looking statements and no guarantees of future performance and actual results or developments may differ materially from projections in forward-looking statements. Forward-looking statements are based on estimates and opinions of management at time the statements are made.