Irvine’s Local.com Corp., which runs an online search engine for finding local businesses, is buying an online advertising startup for up to $11 million.
Local.com is acquiring Los Angeles-based Octane360 for $5 million in cash plus future payments of up to $5.9 million if the company hits business targets.
Octane360 offers services that allow small businesses and advertising agencies to target locally focused websites and to place ads on them.
Adam Rioux, chief executive of 2-year-old Octane360, is set to become a Local.com vice president.
Local.com runs an online search engine that directs users to local businesses, such as “flowers in Irvine.”
Users also get search results that include offers from local businesses, reviews, links to local websites, maps, driving directions and other features.
Local.com, which has a market value of about $100 million, also said it struck a $30 million revolving credit line with Silicon Valley Bank.
The financing, backed by the company’s assets, could be used to fund more “strategic growth initiatives,” according to Local.com.
