Inuvo buys Vertro in stock swap

CLEARWATER -- Inuvo Inc., a technology firm focused on Internet advertising, acquired New York-based Vertro Inc. in an all-stock transaction. Inuvo will issue Vertro shareholders 1.546 shares of its stock for each share of Vertro held, a release says.

Based on closing stock prices from last week, Inuvo's offer represents a purchase price of slightly more than $19 million, and provides Vertro owners with a premium of nearly 70% on their holdings. In fact, Inuvo's stock closed at a higher price ($1.75) than Vertro ($1.61) last Friday.

Inuvo is the larger company in terms of 2010 revenues, with $49 million in business generated last year compared to Vertro's $36 million, financial records show. But while Vertro managed to generate a positive operating income of $1.17 million, Inuvo posted $4 million in operating losses.