Motek Moyen
Event-driven, tech, value, momentum

Constant Contact Is Profitable: It's A Candidate For Acquisition

Digital marketing specialist Constant Contact, Inc. (NASDAQ:CTCT) saw its shares jumped by more than 7% last December 20 after Oracle (NASDAQ:ORCL) announced that is acquiring Constant Contact's rival, Responsys (NASDAQ:MKTG), for $27 per share ($1.5 billion). The web-based marketing industry also experienced another big consolidating takeover last June when SalesForce (NYSE:CRM) bought ExactTarget (NYSE:ET) for $2.5 billion.

(click to enlarge)

SalesForce paid a 50% premium to gain control of ExactTarget and Oracle's $1.5 billion payment for Responsys is also 38% higher than Responsys' market value before the deal was announced. The next consolidation moves in the lucrative digital marketing sector may involve Constant Contact. I won't be surprised if...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details