Cloud-based solutions provider Endurance (EIGI) is buying e-mail marketing specialist Constant Contact (CTCT) for $1.1 billion. Endurance CEO Hari Ravichandran said the deal will make his company substantially larger, but ultimately help the small businesses it serves. ‘Endurance has always provided Web presence for small businesses, and as those businesses get bigger they want to be able to engage their audience and provide them with a way to engage with them for additional marketing solutions,’ said Ravichandran. ‘Constant Contact is a leader in that space.’ Endurance International announced Monday that the two companies have entered into a definitive agreement under which Endurance International will acquire all of Constant Contact’s outstanding shares of common stock for $32 per share in cash. The value represents a multiple of 12 times 2015 estimated adjusted EBITDA, including cash on its balance sheet. The offer represents a premium of approximately 23% over Constant Contact’s closing price of $26.10 on October 30, 2015. Ravichandran said the deal, expected to close in the first quarter of 2016, will create a subscriber base of over five million paying customers and extend the company’s product line by adding Constant Contact’s suite of online marketing tools such as email marketing, events management, social media integration, and contact management systems.
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