(The Hosting News) — Local.com Corporation, a high profile search site and network, officially released information that on December 30, 2009, it acquired approximately 22,000 web hosting subscribers, for a grand total of 40,000 subscribers. Additionally the firm also have an option to purchase up to approximately 10,000 additional web hosting subscribers during the first quarter of 2010.
The acquired customers 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,” said Heath Clarke, Local.com chairman and CEO. “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 company acquired the subscribers from LaRoss Partners, LLC, for approximately $2.6 million in cash, which amount will be reduced in the event any of the subscribers are not successfully transferred to the company. The company funded the acquisition by accessing its previously announced line of credit. The company expects to complete the transfer of the subscribers during the first quarter 2010.