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Media company Local.com, which recently acquired Groupon-clone Screaming Daily Deals’ Screaming Media Group, has secured $12 million in revolving credit through Square 1 Bank.
In a press release, the company said the credit infusion would in part be used to fund acquisitions and “strategic growth initiatives.” The extension of credit comes not only on the heels of the early-July acquisition of Screaming Daily Deals for which Local.com paid $12.5 million in cash, stock, and debt- the company also acquired shopping aggregator Krillion for $3.5 million back in May.
Earlier this week during a call, Local.com CEO Heath Clarke discussed challenges the company has faced in the first and second quarters with revenue growth, but cites the Screaming Media acquisition and traffic gains as indicators financial gains will pick up in Q3 and Q4:
“Although we were challenged with traffic monetization again in the second quarter, we have laid the foundation for our expected return to strong second half revenue growth. We believe that our recent acquisitions provide us with the teams and technologies needed to broaden our product range, and we’ve improved our sales capabilities in order to sell our products directly to local merchants.”
“We retained our agreement with Yahoo!, and we’re encouraged by early indications of monetization improvements from our new ad partner. The acquisition of Screamin’ Media Group accelerates our growth in the daily deals space, and we delivered record organic traffic for the second quarter.”
Local.com reports monthly traffic of about 20 million visitors, operating 1,400 regional media sites and more than 100,000 “geo-category websites.”
