Portico Capital Advises LiveDeal on its Sale to YP Corp.
June 07, 2007
Portico Capital Securities announced today that it served as the exclusive financial adviser to LiveDeal Inc., one of the leading providers of online local classifieds and Yellow Pages marketplaces through its website www.livedeal.com
, in an all stock acquisition by publicly traded YP Corp. Under the terms of the transaction, LiveDeal shareholders received 15,968,514 shares of YP common stock, which represents approximately 25% of the pro forma fully diluted shares of the company post this transaction. The two companies intend to leverage one another’s content, sales teams, and technology to build the dominant online local classifieds and Yellow Pages enterprise in the U.S.
LiveDeal's robust online local classifieds marketplace features more than a million goods and services listed for sale, in every city and zip code across the U.S. LiveDeal offers such industry-leading classifieds functionality as fraud protection, identity protection, e-commerce, listing enhancements, photos, community-building, package pricing, premium stores, featured Yellow Page business listings and advanced local search capabilities. The company was founded in 2003 by Rajesh Navar, an early member of eBay’s engineering team. Mr. Navar will serve as President and Chief Architect of YP Corp. and will also join the YP Board, effective immediately.
Mr. Navar commented, "We couldn't be more pleased to join YP. We expect to become the first company to fuse relevant Yellow Pages and classifieds listings into a powerful, fast growing online local search marketplace helping buyers and sellers in local communities connect with one another quickly and effortlessly. For me personally, it is an eBay opportunity all over again. This combination has created a company that has strong management, profitability and a fast growing $30 billion local advertisement market opportunity."
Daniel L. Coury, Sr., YP’s CEO remarked, "LiveDeal's best-of-breed technology, online classifieds market leadership and Rajesh's industry experience made it a natural choice for us to welcome LiveDeal into the YP family. We are looking forward to creating the most comprehensive online local classifieds and Yellow Pages marketplaces available. Our vision is to create the most powerful solution in the market to find and advertise available goods and services in local communities throughout the U.S."
Raj Das, Principal and Head of Marketing Information Services for Portico Capital, noted: "We are delighted to have worked with LiveDeal on this transaction. LiveDeal received wide attention from both strategic and financial buyers. This combination can accelerate Rajesh's vision to monetize the formidable online local classifieds platform he has built over last four years and has the potential to create significant value for shareholders of both LiveDeal and YP Corp. as a 'win-win' proposition."
Rick Northrop, Managing Partner of Portico Capital, added "Our association with LiveDeal and visionary entrepreneurs like Rajesh Navar reaffirms our commitment to the Marketing Information Services sector, particularly on the interactive side."
About Portico Capital Securities, LLC
Established in 2000, Portico Capital Securities is the leading merchant bank with an exclusive focus on the Information and Business Services industry. Portico provides M&A and private capital financing advisory services to the leading private and public growth companies in this Industry. For more information about Portico Capital’s services, transactions and experience, please visit http://www.porticocapital.com
Richard R.S. Northrop, Managing Partner