Local Businesses Get a Boost with Constant Contact’s Latest Acquisition
In a move to enhance its offerings, Constant Contact, an email marketing company, has acquired SinglePlatform, a startup that helps local businesses manage their online presence. The deal is worth $65 million in cash, plus a $5 million cash and equity earn-out for employee retention, as well as another $30 million tied to revenue targets.
A Strategic Move by Constant Contact
According to Gail Goodman, CEO of Constant Contact, the acquired team will continue to operate "pretty independently" out of its New York City office. The SinglePlatform team will be led by Wiley Cerilli, who will become General Manager and Vice President of SinglePlatform. This strategic move is expected to expand Constant Contact’s offerings in the local business market.
Why the Acquisition?
The acquisition is a result of Constant Contact’s desire to serve local businesses in a more comprehensive way. Goodman emphasizes that many small businesses are coming to see having accurate contact information online as "a right, rather than something they should have to pay for." This shift in perspective aligns with SinglePlatform’s mission to help businesses manage their online presence.
A Standalone Product with a Twist
After the acquisition, SinglePlatform’s basic listings product will become free. However, the company will continue to charge for the full Digital Storefront product, which allows customers to add features like menus, services, and pricing to their listings. This change is aimed at making it easier for businesses to manage their online presence without incurring additional costs.
Complementary Missions
Goodman highlights the connection between Constant Contact’s mission and SinglePlatform’s, stating that they’re trying to serve local businesses in complementary ways. The potential for introducing SinglePlatform’s 10,000 customers to Constant Contact’s 500,000 customers is immense. Cerilli emphasizes that SinglePlatform helps consumers find businesses, while Constant Contact helps those businesses capture the consumer and turn them into repeat customers.
A Competitive Landscape
When asked about how SinglePlatform stood out in the competitive landscape, Goodman points to the network of publishers who distribute its listings (including Foursquare, The New York Times, YP, and UrbanSpoon). Additionally, she highlights the richness of the full digital storefront. SinglePlatform has raised a total of $4.45 million in funding from investors including DFJ Gotham Ventures, New World Ventures, First Round Capital, RRE Ventures, and Jason Finger.
A Bright Future Ahead
With this acquisition, Constant Contact is poised to expand its offerings in the local business market. The integration of SinglePlatform’s technology will enable businesses to manage their online presence more effectively, leading to increased customer engagement and retention. This strategic move solidifies Constant Contact’s position as a leader in the email marketing industry.
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