Email marketing solutions provider Constant Contact has agreed to be acquired by Endurance International Group in a deal valued at $1.1 billion.
Under the agreement, Endurance International will acquire all of Constant Contact's outstanding shares of common stock for $32 per share in cash. The deal, which represents a premium of about 23% over Constant Contact's closing price of $26.10 on October 30, has been approved by the boards of both companies.
— Constant Contact (@ConstantContact) November 2, 2015
Endurance President and CEO Hari Ravichandran said, “We couldn’t be more pleased to welcome Constant Contact to our team and our family of brands. 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. 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. We know that once small businesses have a web presence, they look for other products and services that will help them to grow their business. We see an opportunity to help our growing subscriber base meet their goals through an integrated suite of solutions, and we are excited to add this talented team to our roster."
“Our team has always been passionate about helping small businesses do more business," said Constant Contact CEO Gail Goodman. "Joining the Endurance family of brands will allow us to extend our reach and be a better partner to small businesses across the globe. 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."
As pointed out in the announcement, both Constant Contact and Endurance International Group are based in in Massachusetts.
The deal is expected to close in the first quarter of 2016 pending shareholder approval.
Image via Constant Contact