Constant Contact, a provider of digital marketing tools for small businesses, this morning announced that it has acquiredSinglePlatform, which helps businesses list their products, services and prices on the Web and mobile platforms.
Constant Contact is paying $65 million in cash for SinglePlatform, and has granted approximately $5 million in cash and equity compensation for employee retention purposes.
If the acquired business achieves certain revenue objectives over the next two years, Constant Contact may end up coughing an additional $10 million to $30 million, which means the total deal consideration would be $100 million at the high end. Not bad for a company that was started in 2010.
Here’s its official pitch:
Publish your information once and reach millions of potential customers. SinglePlatform gives small businesses a single place to update their critical business information and delivers that information across dozens of publishing partners, such as Foursquare, New York Times, YP and Urbanspoon.
With SinglePlatform, your information is always up to date so customers will find you when it matters most – when they’re looking for you.
With SinglePlatform’s digital storefront, you can promote your menu, specials, photos, and videos. Manage your social media pages and get a mobile-optimized site. Control your digital presence in one place and see the changes everywhere, extending your storefront to millions.
SinglePlatform’s publishing network reaches more than 200 million consumers per month, the companies claim in a statement.
As part of the acquisition, Constant Contact will make it free for SMBs to create basic listings that will be delivered through SinglePlatform’s publishing partners. Its paid-for ‘Digital Storefront’ product, which enables businesses to add rich content to their listings, will be continued.
Constant Contact says it doesn’t expect the acquisition to have a material impact on revenue for the second quarter of 2012, but expects to incur roughly $1 million in expenses due to transaction costs.
For the full year 2012, SinglePlatform is expected to contribute approximately $1 million of revenue.
SinglePlatform was backed by DFJ Gotham Ventures, First Round Capital, New World Ventures, RRE Ventures, Gunderson Dettmer and CEO (and college drop-out) Wiley Cerilli, who will become a VP at Constant Contact.
SinglePlatform will continue to operate out of its New York City offices and all of SinglePlatform’s employees will join Constant Contact team.