This morning, Dex One and SuperMedia announced that their Boards of Directors have approved plans to merge the two companies, creating a national provider of social, local and mobile solutions through direct relationships with local businesses. Once the transaction is completed, the new company will be named Dex Media.
This is an exciting announcement for our industry. The combined company, which will include an impressive 3,100 local advertising consultants and maintain more than 700,000 local business relationships, is an important and inevitable outcome of today’s changing local search landscape.
At this time of significant fragmentation in local media, the new Dex Media will be a stronger company that is better positioned to transform its business model to take advantage of new digital and social opportunities. Through its national scale, the company will have greater ability to expand distribution and increase market share.
The cost savings achieved through the combination of Dex and SuperMedia will create a more economically sustainable business. The ability of the new company to achieve financial flexibility is vital. In doing so, it will be able to invest in innovative new marketing solutions that will have a positive impact on its mission: to better enable local businesses and consumers to find one another and complete transactions.
In the end, however, the proof will be in the pudding. The merger will require strategic thinking and tough decisions, and the new company’s ability to execute on its vision will determine whether it will achieve success in a crowded marketplace. I have strong confidence in the designated management team, Alan Schultz and Peter McDonald, and their abilities to navigate the challenges ahead.
I also want to recognize Alfred Mockett, Dex One’s CEO, who will step down at the close of this transaction. Alfred is a great leader who has played a key role in helping Dex One reach this milestone.
Congratulations to everyone at Dex One and SuperMedia. We look forward to seeing what you will achieve together.