Laguna Hills-based Interchange Corp. on Monday said it bought the domain name of a local-search Web site,the company’s second acquisition in the past three weeks.
Interchange paid $700,000 for Pasadena-based Local.com Inc., a Web site that allows people to search for local businesses. Companies pay Local.com to post their services on its site.
Interchange, an online advertising company, said it wants to develop Local.com into a worldwide local-search brand, focusing initially in the U.S. and Europe. The Local.com site is set to be relaunched in the second half of 2005.
“We intend to develop this site into a natural destination for consumers searching for local businesses, products or services,” said Heath Clarke, Interchange chief executive.
Last week, Interchange wrapped up its buy of Inspire Infrastructure 2i AB, a Swedish Internet and wireless local-search technology company. The company paid $15 million in cash and could pay another $7.5 million in stock based on future performance to fund the deal.
Interchange recently reported fourth-quarter sales of $6 million in the period, up 115% versus a year earlier. Operating income fell 12% to $413,000.
Analysts had expected nearly $7 million in sales for the quarter. And they further were spooked by Interchange’s projection of lower-than-expected profits for the first quarter and the year.
Interchange shares have fallen 53% since the earnings release to $10.94. The company had a recent market value of $75 million.
Interchange went public in October and saw its shares shoot up 340% to $30 in the following weeks as the company saw benefits from other high-profile Internet public offerings, including that of Google Inc.
