There was an interesting initial public offering filing last night from ReachLocal, Inc. saying that it plans to come public via an IPO. While no terms were listed, the filing is for up to $100 million to be sold in common stock. No ticker was assigned, and it did not say if it was planning a NASDAQ or NYSE listing. ReachLocal helps small and medium-sized businesses acquire, maintain and retain customers via the Internet with a suite of online marketing and reporting solutions, including search engine marketing, display advertising, remarketing and online marketing analytics, each targeted to the small-sized and mid-sized business market.
As of September 30, 2009, the company managed 17,600 active campaigns across 14,500 active advertisers, of which it noted that a substantial majority is expected to spend from $500 to $3,000 per month. Its clients are industry verticals, listed as home repair and improvement, automobile sales and repair, medical and health services, legal services and retail and personal services.
Revenues come from offering online advertising solutions for clients through the ReachSearch™, ReachDisplay™, Remarketing, TotalTrack® and other products and services. Its 2008 revenues were $146.7 million, which is compared to $68.4 million in 2007. Revenue was $143.3 million in revenue in the nine months ended September 30, 2009, a 37.5% increase as compared to the same period in 2008.
J.P. Morgan and BofA Merrill Lynch are co-lead managers; other underwriters listed in the syndicate were Citi, Piper Jaffray, Needham & Company, and Broadpoint Gleacher.
JON C. OGG
DECEMBER 22, 2009
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