The local search land grab continues as today Idearc, the parent company of Verizon and Superpages.com, has announced the purchase of Switchboard.com and other local business directory assetts from Infospace for $225 million.
The addition of Switchboard.com and other InfoSpace directory assets will significantly increase the scale of Idearc’s online directory platform, Superpages.com, and benefit Idearc advertisers who will be seen by more consumers. Idearc plans to leverage its existing infrastructure, advertiser base and product demand to more fully monetize the quality organic traffic acquired from InfoSpace.
More info on the acquisition from Idearc
- The transaction will be financed with a mix of cash and borrowings under Idearc’s existing revolving credit facility.
- Idearc expects to realize operating synergies through the acquisition with its existing Superpages.com infrastructure and cost base.
- The acquisition is expected to be cash-flow accretive in the first year, have no impact on Idearc’s dividend policy and will not have a material impact on Idearc’s pro-forma leverage ratio.
- Superpages.com’s network had 21.3 million unique visitors in August 2007 and InfoSpace Directories and Resources had 7.7 million unique visitors in the same time period, according to comScore’s Media Matrix for August 2007.
- In 2006, Superpages.com had more than 2.8 billion network searches. Idearc will assume Switchboard.com’s existing distribution network.
- The $225 million purchase price represents a multiple of pro forma steady state OIBITDA that is significantly less than Idearc’s current trading multiple, after integration and reflecting the benefit of the tax basis step-up in the acquired assets.