ReachLocal, which sells online marketing services for small businesses through a localized sales force, has been highlighted as Renaissance Capital's Featured IPO. The company plans to raise $75 million by offering 4.2 million shares at a proposed range of $17-$19. JPMorgan and BofA Merrill Lynch are acting as joint bookrunners on the deal, which is expected to price this week.
Founded in 2003 by four online entrepreneurs, ReachLocal operates an automated online marketing platform that helps small and medium-sized businesses (SMBs) acquire customers by creating, optimizing and tracking online campaigns. Taking the playbook from the local yellow pages, the company sells primarily direct through its 569 person and growing "feet on the street" sales force and, for a fixed fee, takes a client’s online ad budget and allocates it across various channels, such as paid search engines and online display ads.
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