Endurance International Group Holdings Inc said it would purchase email marketer Constant Contact Inc in a $1.1 billion deal on Monday that surprised investors and sent shares lower by 20 percent.Endurance International's Chief Executive Hari Ravichandran said in an interview that buying Constant Contact is a sound investment that will give the company access to 500,000 new customers."I think the market will start to understand it a little bit better, but there's definitely a knee-jerk reaction. The unknown always causes anxiety to public investors," he said. The deal, which is Endurance's largest to date, will add Constant Contact's online marketing tools such as email marketing, events management and social media integration to Endurance's portfolio of Web-hosting software for small and medium-sized businesses.
Constant Contact, Inc. (Constant Contact) is a provider of online marketing tools for small organizations, including small businesses, associations and non-profits. Shares of CTCT traded higher by 22.15% or $5.78/share to $31.88. In the past year, the shares have traded as low as $22.75 and as high as $43.18. On average, 327768 shares of CTCT exchange hands on a given day and today's volume is recorded at 5097923.
Endurance International Group Holdings, Inc. (Endurance) is a provider of cloud-based platform solutions designed to help small and medium-sized businesses (SMBs) succeed online. Shares of EIGI fell by 17.4% or $-2.32/share to $11.01. In the past year, the shares have traded as low as $10.29 and as high as $23.49. On average, 743175 shares of EIGI exchange hands on a given day and today's volume is recorded at 6030795.