UPDATE 1-ReachLocal files for $100 mln IPO
* Files for IPO of up to $100 mln
* Money for working and general use, deferred obligation
NEW YORK Dec 22 (Reuters) - Internet marketing company ReachLocal Inc on Tuesday filed for an initial public offering of up to $100 million.
The Woodland Hills, California-based company, which provides services to maximize the effectiveness of online advertising by small and medium businesses, said it would use proceeds from the offering for working capital and general corporate purposes. The proceeds would also go to pay a deferred obligation of $6.1 million in connection with its ReachLocal Australia acquisition, the company said.
In September the company acquired the roughly 53 percent of its Australia operations that it did not already own.
ReachLocal reported revenue of $143.3 million in the nine months ended Sept 30, up 37.5 percent from the same period a year ago. It reported net income of $11.7 million compared with a net loss of $4.6 million a year ago.
ReachLocal recorded a one-time $16.2 million non-cash gain in connection with its acquisition of ReachLocal Australia but said in a regulatory filing it has accumulated a deficit of roughly $3.3 million after the gain, and expects to report net operating losses in the foreseeable future.
The company's shareholders include funds affiliated with VantagePoint Venture Partners, Rho Ventures and Galleon Group LLC.
Underwriters are led by J.P. Morgan and Bank of America Merrill Lynch. (Reporting by Clare Baldwin; Editing by Steve Orlofsky)