DENVER, Colo. November 1, 2005 – Local Matters, Inc., a technology company transforming the Yellow Pages market through advanced Internet, voice and mobile search and media solutions, today announced it has secured equity financing of $20 Million from Sandler Capital Management.
"Local Search represents a large market, with a substantial opportunity for technological innovation and rapid growth," said Michael Marocco, senior managing director, Sandler Capital. "Local Matters is extremely well positioned, with a unique and compelling vision, early successes, and a solid management team, to take advantage of this market opportunity. We are very excited to join the Local Matters team and assist them in executing their growth initiatives."
The proceeds of this equity financing will be used to support corporate development initiatives, including the acquisition of MyAreaGuides.com, Inc. and Online Web Marketing, Inc., the owners of a network of specialized local search sites operating as AreaGuides. This vertical portal and media services business aggregates and integrates a broad range of local content, serving more than 3 million monthly unique visitors and a traffic profile ranked in the top 15 of local directories.
The acquisition of AreaGuides complements Local Matters' existing product suite for Yellow Pages publishers and 411 service providers. AreaGuides is an aggregator of local content, focused on the travel and relocation industries. The Company packages this content to generate targeted traffic, which is highly valued by Yellow Pages publishers and other locally targeted marketing channels.
Mr. Marocco will join the Local Matters Board of Directors, which is comprised of other top quality investment professionals and leaders in the Yellow Pages, media, advertising and search industries, including past investors Spencer Trask Ventures and Software Seed Capital.
SG Cowen & Company, LLC acted as lead placement agent and financial advisor to Local Matters in this transaction. Legacy Capital provided investment banking services to MAG.
SG Cowen & Co., LLC
SG Cowen & Co., LLC is a full-service investment banking and securities brokerage firm with a global commitment to the health care, technology, media, telecommunications, consumer and related high-growth sectors. SG Cowen & Co. provides innovative financing solutions to clients and investors worldwide. It is a part of SG Corporate & Investment Banking, and a subsidiary of Societe Generale, a diversified, global financial services institution. SG Cowen & Co. is a registered broker-dealer and a member of SIPC.
About Legacy Capital
Legacy Capital provides investment banking and advisory services to small and middle-market companies. The firm prides itself on its extensive and individualized industry research for clients. Founded in 1994, the firm assists with mergers & acquisitions, as well as recapitalizations, valuations, and capital raising. For more information on Legacy Capital, please visit
www.legacycapital.com.
About Sandler Capital Management
Sandler Capital Management has managed both hedge funds and private equity funds since 1980 and 1989, respectively. The firm has $1.3 billion in combined assets under management and capital commitments. Sandler's private equity effort focuses on the media, communications, entertainment, technology and market/information services industries. Sandler's investment professionals have over 200 years of combined experience as research analysts, portfolio managers, financial advisors, investment bankers, and private equity investors. For more information on Sandler Capital, please visit
www.sandlercap.com.
About Local Matters
Local Matters, Inc., with more than 40 customers in 18 countries, is a technology company transforming the Yellow Pages market through advanced Internet, voice and mobile search and media solutions. The company is driving this transformation by providing industry-leading outsourced search services for major publishers and information service providers, and by developing high value local-vertical shopping portals. Visit us at
www.localmatters.com.
Contact
Jennifer Roane
104° West Partners
Tel: 303-628-5479
jennifer.roane@104degreeswest.com
