Dive Brief:
- Email marketing platform Constant Contact has agreed to be acquired by Endurance International Group for $1.1 billion after the latter company bought out all of Constant Contact’s outstanding common stock for $32.00 per share.
- The combined companies will have more than five million combined subscribers, largely serving a customer base of small and medium-size businesses with marketing technology products.
- The deal is expected to be completed by Q1 2016.
Dive Insight:
The merger deal would add Constant Contact's email marketing capabilities to Endurance's portfolio of martech solutions for small and medium-size businesses.
Endurance currently provides web hosting, e-commerce, online marketing, and mobile solutions to its customers. Its brands include Bluehost, HostGator, iPage, Domain.com, A Small Orange, MOJO Marketplace, BigRock and ResellerClub.
"We have long admired Constant Contact and its strong management team, and all that it has accomplished in building a great product set, as well as building an influential culture and team," Hari Ravichandran, president and CEO of Endurance International Group, said in a statement. "Their focus on the customer and product development complements our offerings for small business services, and expands our ability to address the needs of SMBs.”
The value of the deal represents a 23% premium over Constant Contact’s closing price on October 30, 2015. The deal has been approved by both companies' boards and is subject to Constant Contact shareholder approval. Both companies expect the deal to close in early 2016.