Local.com, a local business finding search engine, has sold 2,356,900 shares of its common stock to two institutional investors in a private placement transaction for $5.50 per share. The reason for doing so is to secure approximately $13 million in financing which is to be used for acquisitions, to expand sales, to protect the company’s growing intellectual property portfolio, and for general working capital.
In terms of acquisitions, Local.com acquired a local player in PremierGuide last month for $2 million. PremierGuide provides local business directories for publishers such as the WashingtonPost.com and GateHouse Media.
Expect similar acquisitions in the future which help Local.com deeper penetrate into the local business market.
