Endurance International To Acquire Constant Contact For About $1.1 Bln Cash

(RTTNews) - Endurance International Group Holdings, Inc. (EIGI), and Constant Contact, Inc. (CTCT) have entered into a definitive agreement for Endurance to acquire all of Constant Contact's outstanding shares of common stock for $32.00 per share in cash, valuing Constant Contact at about $1.1 billion.

The offer represents a premium of 23 percent over Constant Contact's closing price of $26.10 on October 30.

The transaction has been approved by the boards of directors of both companies. It is expected to close during the first quarter of 2016.

The deal will combine two leaders in small business online products and services, creating a full suite of online marketing tools and end-to-end solutions. It increases subscribers on a combined basis to over 5 million.

The deal is expected to deliver immediate and long-term financial benefit, with estimated fiscal 2015 combined pro forma adjusted revenue of $1.1 billion and pro forma adjusted EBITDA of $350 million.

It is anticipated to generate fiscal 2016 combined year over year growth in pro forma adjusted revenue of 10 percent to 12 percent, and around $400 million in pro forma adjusted EBITDA.