One of the larger email marketing platforms, Constant Contact, is being acquired by Endurance International Group for about $1.1 Billion. Endurance International Group is a large technology solution provider that has reportedly been looking to expand their already successful marketing platforms.
Constant Contact has been a fast growing email marketing company that has been advertising heavily to small businesses with great success. With the acquisition, EIG will have over five million active subscribers and are estimating that they will enjoy a year over year growth rate of 10-12% in 2016, which is very significant.
EIB’s CEO, Hari Ravichandran said of the deal, “Their focus on customer and product development compliments our offerings for small business services, and expands our ability to address the needs of SMBs.”
Gail Goodman, CEO of Constant Contact commented saying, “We have long shared a parallel path – from our focus on SMBs, to technology, to talent – and we believe this transaction will build continued value for all constituents.”
Constant Contact is used by many small businesses and marketers both online and off. What impact this will have on those who are currently using their system will become clear in the coming months. The acquisition is anticipated to be completed sometime in the first quarter of 2016 assuming there are no regulatory issues. At this point at least there is no expectation of any approval issues.
