An earlier version of this report had the incorrect purchase price. It has been corrected.

USA Today publisher Gannett Co. Inc. GCI, -7.53% said Thursday it has reached agreement to acquire digital marketing software company WordStream Inc. for $130 million in cash plus up to $20 million payable in 2019 and 2020 if certain revenue goals are met. Gannett expects the deal to add about $55 million in digital marketing services revenue in the first year and to add about $16 million in adjusted EBITDA. The deal is expected to boost earnings in its first full year after closing, which is expected in the second quarter. Gannett will finance it using its revolving credit facility. Shares were not yet active premarket, but have gained 41% in the last 12 months, while the S&P 500 SPX, -2.37% has gained 12%.