Local Matters, a US-based media technology solutions provider, and local mobile search and advertising company mobilePeople, have entered into a Share Purchase Agreement, under the terms of which Local Matters will acquire all of the outstanding capital stock of mobilePeople in exchange for a combination of cash and Local Matters stock. The combined company will provide directory publishers, media publishers and directory assistance providers with media technology solutions that connect consumers and advertisers across digital channels including the Internet, wireless and voice.

There are now more than 3 billion mobile users globally, and local search ranks among the top content categories that consumers use on their mobiles. Publishers are increasingly extending into Internet and mobile to capture users and local advertisers.

“We chose mobilePeople because we believe they have the best technology to create a mobile distribution presence for publishers,” says Local Matters CEO Perry Evans. “Its expertise, its track record and its innovation cycles set them apart from the many other companies in this space. Our aim now is to be the preferred one-stop shop for directory publishers and directory assistance providers for outsourced media technology solutions online, on wireless and on voice.”

The two companies formed a business partnership in 2006 and have several joint initiatives in progress. The closing of the transaction is subject to additional closing conditions and is currently expected to close in the second quarter of 2008.