Gannett Co Inc (NYSE:GCI) has agreed to acquire ReachLocal Inc. (NASDAQ:RLOC).
The media company announced that the move will help it bolster its digital branch as ReachLocal helps offer marketing solutions for local businesses, putting them in touch with major tech firms.
Gannett will shell out about $4.60 a share for the company, or about $156 million. The deal marks a 188% premium over ReachLocal’s Monday closing price.
Both board of directors approved the deal unanimously, which is slated to close in the third quarter of Gannett’s current fiscal year.
GCI shares fell 1.8% on the move. RLOC stock skyrocketed 173.5% Tuesday.
