Gannett Co. Inc. completed its acquisition of WordStream Inc., a provider of cloud-based software-as-a-service solutions.
The purchase price was $130 million in cash, net of cash acquired, plus up to a payable earnout of $20 million in 2019 and 2020 based on achieving certain revenue targets.
Gannett in May agreed to buy WordStream to help with digital marketing campaigns. The company funded the acquisition from a combination of cash on hand and borrowings under the company's revolver.
In the first year, Gannett expects WordStream to contribute about $55 million in digital marketing services revenue and roughly $16 million of adjusted EBITDA. Gannett anticipates the transaction will be accretive in the first full year of operations.