(By Balachander) Online marketing company Constant Contact Inc. (NASDAQ:CTCT) has acquired SinglePlatform, a New York-based startup that helps small businesses get found online, for $70 million plus potential earn-out.
Waltham, Massachusetts-based Constant Contact expects the acquisition to drive "accelerated customer additions with significant cross sell opportunities".
The transaction is expected to contribute more than $10 million to Constant Contact's revenue for the full year 2013. Following the deal, the company now expects adjusted EBITDA between $35.4 million and $36.7 million, down from prior view of $45.8 million to $46.9 million for 2012.
Founded in 2010, SinglePlatform's investors include DFJ Gotham Ventures, First Round Capital, New World Ventures, RRE Ventures, and chief executive Wiley Cerilli. Late last year, SinglePlatform raised $3.25 million in venture funding, taking its total funding to $4.45 million. SinglePlatform employs roughly 60 people.
SinglePlatform helps small business easily create a content-rich "digital storefront", allowing them to be found and selected. SinglePlatform also distributes content across a publishing network that reaches more than 200 million consumers per month.
This network includes sites such as the Yellow Pages, the New York Times, FourSquare, UrbanSpoon and more than 100 signed publishing partners.
Constant Contact will pay $65 million for SinglePlatform, plus a further $5 million in employee-retention bonuses and equity retention plans. In addition, it may be obligated to pay up to $30 million over the next two years upon achievement of revenue targets.
The stock, which has been trading in the 52-week range of $14.46 to $32.18, tumbled 10.86 percent to trade at $17.45 on Wednesday.