Reachlocal the site that helps local business connect with mobile and web advertisers has acquired DealOn, a daily deal website for $10 million today. Groupon doen’t need to worry though, as Reachlocal does not want to enter their market-space directly.
Reachlocal wants to work with smaller publishers and help them deliver their own deals. Some publishers like Yelp provide deals for its customers. However that requires a strong sales team, something that smaller publishers will not have access too. Reachlocal plans to lend its 700 sales people to help other publishers deliver their own daily deals.
Zorik Gordon, chief executive of ReachLocal explained further:
“We didn’t want to out-Groupon Groupon. They’ve clearly won that space. We want to be the provider of record for everybody else who wants to put deals on their site.”