• Feb. 9, 2016, 3:45 PM
    • Endurance International Group (EIGI -3.4%) has closed its acquisition of Constant Contact (CTCT +4.5%), it says.
    • CTCT shares quickly closed the gap to the $32/share acquisition price. They had closed at $30.62 yesterday.
    • As announced in November, the deal's in cash and amounts to $1.1B, including $200M of cash on Constant Contact's balance sheet; Endurance funded the deal with $735M in senior secured term loans and $350M in senior unsecured notes.
    • Constant Contact shares will stop trading on Nasdaq at the close.
    • Previously: Constant Contact shareholders approve buyout by Endurance International (Jan. 21 2016)
    • Previously: Roth: Competing bid unlikely for Constant Contact (Nov. 03 2015)
    Feb. 9, 2016, 3:45 PM
  • Jan. 21, 2016, 11:07 AM
    Jan. 21, 2016, 11:07 AM | 8 Comments
  • Nov. 23, 2015, 8:04 PM
    Nov. 23, 2015, 8:04 PM
  • Nov. 6, 2015, 12:45 PM
    • Constant Contact (NASDAQ:CTCT) is holding firm today at $31.60 -- the same as yesterday's closing price, and hanging just under the $32/share acquisition price it's getting from Endurance International Group (EIGI +3%) -- despite the second downgrade in two days from Roth Capital.
    • On Tuesday, the firm downgraded CTCT to Neutral with "little likelihood of a competing bid." After its Q3 revenues missed Roth's expectations, though, analyst Richard Baldry suggests it might not be worth holding the shares to deal closure.
    • He downgraded the stock to Sell. on Tuesday, he had downgraded it to Neutral and cut his price target to the deal price of $32.
    • "We looked back and in the past ten years this was the smallest sequential increase in the company's history,” Baldry says of revenues.
    • The valuation won't change, he concedes, but the upside of holding the shares isn't worth the downside risk of the deal failing, with another offer unlikely to come in. Earlier this week, he pointed to his favorite names in the space: LivePerson, Interactive Intelligence, and Tangoe.
    • Endurance International has rebounded today but is down 7.5% since the deal was announced.
    Nov. 6, 2015, 12:45 PM
  • Nov. 3, 2015, 11:31 AM
    • Constant Contact (NASDAQ:CTCT) is off 0.9%, but from the new price level it established yesterday up 22% after a $1.1B buyout bid from Endurance International Group (EIGI +3.2%). CTCT is at $31.53, down from $31.83, against EIGI's $32/share deal.
    • Roth Capital's Richard Baldry sees "little likelihood of a competing bid," and accordingly has downgraded CTCT to Neutral, and reduced his target price to the deal price of $32/share from a previous $38.
    • The offer is a "fair control premium, even though it is a valuation well discounted to CTCT’s broader SaaS peer group average of 4.6x," Baldry says.
    • "We expect deal to close as-announced ... We believe CTCT’s focus on the SMB space make it unsuitable as an acquisition target for most larger SaaS players, as they tend to focus on the Enterprise space, in our opinion."
    • He does think the deal could make other value-oriented names in the space more attractive, holding buy ratings on LivePerson (LPSN +2.3%), Interactive Intelligence (ININ -3.8%) and Tangoe (TNGO +2.3%).
    Nov. 3, 2015, 11:31 AM
  • Nov. 2, 2015, 8:57 AM
    • Constant Contact (NASDAQ:CTCT) is up 21.7% premarket on word it's getting bought for $1.1B by Endurance International Group Holdings (NASDAQ:EIGI) in a cash deal.
    • The offer price comes to $32/share, a 22.6% premium to Friday's close. Endurance, with a collection of Web-hosting products including BigRock, HostGator and FatCow.com, will add on Contant Contact's online marketing products.
    • The companies expect combined pro forma revenue for fiscal 2015 of about $1.1B and pro forma adjusted EBITDA of $350M, and then 10-12% revenue growth in 2016 with $400M in EBITDA.
    • Both boards have approved; the deal is expected to close in the first quarter.
    • Updated 10:41 a.m.: Endurance International stock is down 21.4% on the news.
    Nov. 2, 2015, 8:57 AM
  • Apr. 10, 2014, 11:36 AM
    • IBM (IBM +1.1%) is acquiring Silverpop, a developer of cloud-based marketing automation software to 8K+ clients, for an undisclosed sum.
    • Big Blue praises Silverpop's ability to enable personalized interactions with potential clients, and to provide "sophisticated automation capabilities more commonly applied in lower volume B2B scenarios to complex B2C environments."
    • Its software will be leveraged by IBM's 140 Ready for Smarter Commerce marketing partners, and integrated within a new IBM cloud marketing suite - details for the latter are due in May.
    • Silverpop competes to varying degrees against Oracle-acquired Eloqua and Responsys, Salesforce-acquired ExactTarget, and Adobe's Marketing Cloud platform. It also competes against Marketo (MKTO -7.5%) and Constant Contact (CTCT -4.5%), which are selling off hard today amid a tech rout. Both companies have been lifted by M&A speculation in the past.
    • The companies are all looking to profit from a shift in IT spend towards CMOs. IDC has observed IBM's efforts in this area could lead it to face off more against ad agencies such as WPP and Omnicom.
    • Past marketing-focused IBM acquisitions: DemandTec, Xtify, Unica
    Apr. 10, 2014, 11:36 AM
  • Dec. 20, 2013, 6:21 PM
    • Responsys (MKTG +40.4%) closed today at $27.40, $0.40 above Oracle's (ORCL -0.6%) $27/share acquisition price. Meanwhile, fellow cloud marketing automation software firms Marketo (MKTO +11.3%) and Constant Contact (CTCT +6.8%) closed up sharply.
    • Sources tell the WSJ SAP (SAP +0.8%) was "among the final bidders" for Responsys before Responsys decided to sell to Oracle. An analyst talking to the paper thinks Responsys' trading price suggests investors are betting on an SAP counteroffer arriving.
    • FBR, on the other hand, thinks Oracle's deal could lead either SAP or NetSuite (N +2.2%) to acquire Marketo. Both SAP (courtesy of the hybris acquisition) and NetSuite (via its SuiteCommerce platform) are major players in e-commerce infrastructure software, but neither have leading positions in online marketing automation.
    • Forrester argues Oracle's move will improve the company's "capable but otherwise moribund" marketing software lineup. Goldman notes Oracle is paying 8x Responsys' recurring annual revenue - a steep multiple, but less than the 11x it paid for Eloqua.
    Dec. 20, 2013, 6:21 PM
  • Dec. 20, 2013, 9:33 AM
    • Oracle (ORCL -0.1%) is acquiring cloud marketing automation software firm Responsys (MKTG) for $1.5B, or $27/share, in cash. The price represents a 38% premium to Responsys' Thursday close. The deal is expected to close in 1H14.
    • Oracle has already made several online/social media marketing software acquisitions in recent years, the largest being its $871M purchase of Eloqua. Responsys' products, like Eloqua's, will be added to Oracle's Customer Experience Cloud, which offers a number of cloud-based sales/marketing software products..
    • Oracle is doubtlessly looking to better compete against Salesforce (CRM +0.5%), which just spent $2.5B to buy marketing automation software vendor ExactTarget. The deal fueled hopes Responsys or Marketo (MKTO) would be acquired as well. Marketo and Constant Contact (CTCT +4.2%) are trading higher in response to the deal.
    • Adobe (ADBE) is also moving aggressively in this space; it recently bought French marketing automation vendor Neolane for $600M. Oracle, Salesforce, and Adobe, along with SAP and IBM, are each trying to profit from an ongoing shift in ad spend towards digital channels (inc. social media), and a shift in IT spend towards CMOs.
    Dec. 20, 2013, 9:33 AM
  • Jul. 31, 2012, 4:53 PM

    Google (GOOG) has acquired Wildfire, a provider of solutions that help advertisers manage social media activity. The price tag is reportedly around $250M. Oracle and Salesforce.com have also bought startups in this space, evidence tech companies are bullish on Facebook (FB) ad spending even if Wall Street still has doubts. Google's purchase allows its growing display ad unit to cross-sell social media ads. Constant Contact (CTCT -5.3%), another player in this market, fell sharply.

    Jul. 31, 2012, 4:53 PM | 1 Comment
  • Jun. 13, 2012, 10:42 AM

    Constant Contact (CTCT -8.4%) dives after announcing it has acquired SinglePlatform, developer of a site that allows small businesses to have their information published on numerous sites/apps. The acquisition price includes $65M in guaranteed cash, as well as $15M-$35M in potential milestone and retention payments. CTCT expects SinglePlatform to contribute over $10M in 2013 revenue, but sees the deal hurting 2012 profits, and doesn't expect it to be accretive until the end of 2013.

    Jun. 13, 2012, 10:42 AM
  • Jun. 4, 2012, 2:47 PM

    Online/social media marketing solutions providers ExactTarget (ET +6.8%) and Constant Contact (CTCT +4.1%) appear to be getting a lift from Salesforce.com's purchase of Buddy Media, as hopes grow of further consolidation in the space. Bazaarvoice (BV +0.2%), however, isn't joining in on the fun.

    Jun. 4, 2012, 2:47 PM | 1 Comment
  • Jun. 1, 2012, 12:33 PM

    Oracle's (ORCL) purchase of Vitrue and Salesforce.com's (CRM) reportedly pending acquisition of Buddy Media are questionable moves given Madison Ave.'s long history of crushing upstarts trying to "disrupt" it, argues Jim Edwards. Also, there are still big question marks about the effectiveness of social media ads; Facebook could turn into a direct competitor; and Oracle and Salesforce's enterprise software focus could trip the companies up. Edwards' concerns are also relevant to BV and CTCT.

    Jun. 1, 2012, 12:33 PM
  • May 23, 2012, 9:20 AM

    A day after archrival SAP spent $4.3B on Ariba, Oracle (ORCL) is reportedly spending over $300M to buy Vitrue, developer of a cloud-based social media marketing platfrorm. Vitrue, which competes with Constant Contact (CTCT) and Bazaarvoice (BV), complements the cloud customer support solutions Oracle obtained through its purchase of RightNow. Of course, the effectiveness of social media marketing has become a hot-button subject lately.

    May 23, 2012, 9:20 AM
  • Apr. 27, 2012, 11:57 AM

    Intuit (INTU +0.4%) is acquiring Demandforce, a developer of cloud marketing software for SMBs, for $423.5M in cash. The deal might be the strongest example yet of Intuit's efforts to diversify beyond tax software - the company has already made a strong push into mobile shopping and payments. However, the cloud marketing space is getting crowded - CRM, CTCT, BV, and ORCL are also key players.

    Apr. 27, 2012, 11:57 AM
  • Feb. 28, 2012, 6:10 PM

    Vocus (VOCS) drops 5.2% AH after posting Q4 results and announcing it's acquiring iContact, a provider of e-mail and social media marketing software. Vocus will pay $91M in cash, $9M in common stock, and $79M in convertible preferred stock. Interest in social media marketing software is heating up, as evidenced by Bazaarvoice's (BV) IPO and recent products from CTCT and CRM. Will there be enough customer dollars to go around?

    Feb. 28, 2012, 6:10 PM