The StarPhoenix 

A Facebook application developed by a Saskatoon company has been acquired by a U.S. online media publisher.

The deal involving Point2 Technologies Inc.'s Facebook Neighborhoods application will allow the company to maintain and develop the application's database while Local Matters Inc. will assume marketing and development efforts for the program.

The application draws on Point2's database that forms the basis for the Point2 Homes real estate search portal.

"We cannot think of a more strategically viable partnership and path to continue to develop Neighborhoods for Facebook, optimize its benefits for our members and tap its revenue potential than with Local Matters," said Saul Klein, Point 2's CEO, in a company release.

Given the rising popularity of marketing through social networks, Klein believes the partnership will allow both groups to capitalize on the application's position on Facebook.

The strengths of the two companies complement each other, said Perry Evans, CEO of Denver, Colo.-based Local Matters. In the release, Evans said his company, which offers consumers a means to search for local content both online and through voice-based directory assistance, is excited to connect to one of the world's largest social networks.

"Events that occur in your neighbourhood are extremely important to consumers, which makes Neighborhoods one of the most substantial and useful applications on Facebook, even in its early stages of adoption," he said.

No financial details of the acquisition were released.

Point2 launched the application in July 2007. More than 800,000 Facebook users have installed the application.