Constant Contact raises $400 million of equity to rapidly accelerate growth through investments in product development, sales talent, and customer support
Constant Contact remains focused on delivering exceptional experiences to businesses looking for smarter ways to interact with their customers
Santa Monica, CA, New York, NY, and Waltham, MA – February 10, 2021 – Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) and Siris Capital Group, LLC (“Siris”) announced today a $400 million growth equity investment by their affiliates in cloud-based digital marketing leader Constant Contact, Inc. (“Constant Contact” or the “Company”). The Company will continue to focus on delivering best-in-class solutions to dynamic businesses where targeted, data-driven marketing has become absolutely essential to their sustained success. As part of the investment, Constant Contact will spin-out from previous owner Endurance International Group Holdings, Inc. (“Endurance”) and move forward as a standalone business.
Headquartered in Waltham, Massachusetts, Constant Contact provides a cloud-based marketing platform that enables SMBs to create and track personalized marketing campaigns fueled by data-driven insights. A one-size fits all approach to marketing is ill-suited for today’s dynamic marketplaces particularly as businesses expand their digital footprints and transform the ways they interact with current and prospective customers. SMB marketers’ increasing reliance on highly personalized messaging delivered through digital channels has resulted in Constant Contact’s solutions being more relevant than ever. The Company’s software solutions facilitate the creation and distribution of professional-quality marketing emails to customers with easy-to-use drag and drop templates to improve customer engagement and help them drive better top-line performance in their own businesses. The comprehensive digital platform will continue to support and transform the ways that SMBs use data to boost their marketing efforts.
The Company boasts a long-standing, loyal customer base with over 470,000 subscribers that send approximately 7.5 billion emails per month as part of almost 2.5 million marketing campaigns. “Constant Contact is an important and trusted partner in my marketing strategy,” said Sonja Rasula, Founder & CEO of Unique Markets, a current Constant Contact customer. “I’m excited about their evolution and increased potential for growth, and what it will mean for the future of my business.”
“Constant Contact is one of the most well respected and recognized franchises in all of digital marketing and is poised to benefit from a number of significant growth drivers in the near-term,” said James Pade, Partner, of Clearlake. “We believe that this investment will provide the management team with significant resources to rapidly bolster the go-to-market organization and make large-scale investments in the product platform.”
“We are thrilled to partner with Constant Contact as the Company focuses on supporting modern-day marketers as they look to enhance key revenue generating activities,” said Tyler Sipprelle, Managing Director, of Siris. “We look forward to working with the Company’s passionate team to extend the Company’s leadership position through both organic and inorganic growth initiatives.”
Constant Contact is a leader in digital marketing with a mission to provide people with a smarter way to market an idea, small business or cause online. Our platform has all the right tools, all in one place—from a logo maker and intelligent website builder to establish your brand; to email, social and search marketing tools to help you find new customers and keep them coming back. Paired with award-winning marketing advisors who know marketing across industries inside and out—and provide practical advice at every step of the way—we offer the right approach to online marketing to achieve the results you want. For more information, visit: www.constantcontact.com.
Clearlake Capital Group, L.P. is a leading investment firm founded in 2006 operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are technology, industrials and consumer. Clearlake currently has approximately $30 billion of assets under management and its senior investment principals have led or co-led over 200 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.
Siris is a leading private equity firm that invests primarily in mature technology and telecommunications companies with mission-critical products and services, facing industry changes or other significant transitions. Siris’ development of proprietary research to identify opportunities and its extensive collaboration with its Executive Partners are integral to its approach. Siris’ Executive Partners are experienced senior operating executives that actively participate in key aspects of the transaction lifecycle to help identify opportunities and drive strategic and operational value. Siris is based in New York and Silicon Valley and has raised nearly $6 billion in cumulative capital commitments. www.siris.com.
This press release contains forward-looking statements, including with respect to the anticipated benefits of the transactions. Forward-looking statements can be generally identified by the use of words such as “will,” “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “continue” or similar terminology. These statements reflect the parties’ current expectations and are not guarantees of future performance or results. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in, or implied by, the forward-looking statements. These risks and uncertainties include the companies’ ability to recognize the anticipated benefits of the transaction and the risk that revenue opportunities, cost savings, synergies and other anticipated benefits from the transaction may not be fully realized or may take longer to realize than expected. These forward-looking statements speak only as of the date on which the statements were made. None of Siris, Clearlake, Endurance or Constant Contact undertakes any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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