The media and marketing solutions giant Garnett Company, Inc. has announced its acquisition of the digital marketing software company Wordstream, Inc. The largest U.S. newspaper publisher by daily circulation, Garnett plans to expand further into the digital marketing sector with its acquisition.
Combined with its existing digital marketing services ReachLocal and SweetIQ, Garnett’s procurement of Wordstream will enhance its capability in providing data-driven, intelligent marketing solutions to its clients.
Wordstream provides cloud-based software-as-a-service (SaaS) solutions for local and regional companies to improve their digital marketing campaigns. Its self-managed service is innovative, offering clients DIY solutions backed by smart recommendations and digital training programs.
With the acquisition of Wordstream, Garnett’s portfolio of digital marketing services expands, encompassing DIY solutions to managed services for local or regional agencies.
Wordstream was purchased for US $130 million in cash, net of cash acquired, with up to an aggregated US $20 million payable in 2019 and 2020 depending on revenue targets achieved.
It is expected to earn US $55 million revenue and US $16 million in its first year of its acquisition.
This acquisition reveals the need for established media companies to continue to expand, as traditional media is overtaken by digital technology.
With the market for digital marketing services in the U.S. estimated at US $90 billion, it’s no surprise that it is the sector Garnett is pursuing a future in. This market is only expected to grow as technology becomes more integrated into society.
By adding Wordstream and its software solutions to its services, Garnett can now offer a complete range of digital marketing services. This expands its addressable market and contributes towards its capabilities.
Garnett sees immense opportunity, believing the utilisation of their data, marketing technologies, and analytics with Wordstream’s software will enhance its abilities. Garnett’s procurement of Wordstream shows its dedication to improving their marketing solutions and establishing itself as a digital marketing firm.