(NASDAQ:CTCT) today announced that the two companies have entered into a definitive agreement under which Endurance global will acquire all of Constant Contact’s outstanding shares of common stock for $32.00 per share in cash, valuing Constant Contact at approximately $1.1 billion.
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Constant Contact will remain a distinct brand with its suite of online tools such as e-mail marketing, events management and social-media integration, the companies said.
“Of course there will be changes, but we haven’t gotten to any specifics yet”, Constant Contact chief executive Gail Goodman told BizWest on Monday. Endurance shares slid as much as 23 percent after the announcement.
Endurance, which also reported results on Monday, said on its post-earnings conference call that talks around the acquisition had started late past year.
The deal is expected to close in the first quarter of 2016. Constant Contact shares had risen more than 22 percent to $31.83 by midafternoon Monday – still well below their record high of $43.18 in August – while shares of Endurance, which had closed at $13.33 on Friday, were down almost 19 percent to $10.80. 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. It increases subscribers on a combined basis to over 5 million.
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Endurance is paying for the acquisition with debt financing of up to $1.085 billion from Credit Suisse AG and an affiliate of Goldman Sachs.
