Davenport-based Lee Enterprises’ subsidiary TownNews will purchase the content management system business from GTxcel, a Boston-headquartered digital company that provides CMS to more than 200 broadcasters and magazine publishers.
“A big part of our strategy is to accelerate revenue and cash flow growth at TownNews,” Lee President and CEO Kevin Mowbray said in a news release Thursday.
“Revenue at TownNews over the last six months is up more than 30 percent over prior year, and we believe this acquisition will further accelerate revenue growth,” Mowbray said.
“GTxcel’s content management business expands TownNews’ ability to partner with broadcasters, and it further underscores Lee’s commitment to aggressively drive digital revenue.
“With the acquisition, we are gaining market share, expanding our service offerings to include WordPress CMS and acquiring staff with expertise in digital development, implementation and sales,” he said.
Lee owns 82.5 percent of TownNews, which provides web hosting, content management, video and other digital services to nearly 1,800 media outlets.
Lee Enterprises owns and operates daily newspapers, digital products and nearly 300 weekly and specialty publications in 20 states. Its Iowa newspapers are in Waterloo-Cedar Falls, Mason City, Muscatine, Sioux City and the Quad Cities.