InfoSpace Inc. will acquire Switchboard Inc., a rival provider of Internet Yellow Pages, for $160 million.
Local search allows users to look up local businesses by simply typing in the kind of business and a ZIP code. The directory then returns a list of businesses in the area.
According to news reports, the deal is expected to close in the second half of this year. Bellevue, WA-based InfoSpace said the deal would add $10 million to $12 million in revenue and $4 million to $5 million in search and directory income at that time.
The combined company would account for 23% of online yellow-pages searches, according to research firm comScore/Media Metrix.
InfoSpace operates a number of search sites and is a wholesaler of underlying search technology for other Web sites. The acquisition of Switchboard gives InfoSpace an online destination of its own, according to Kaufman Brothers analyst Mark May.
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