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A day after Yext raises money at $270M valuation, competitor gets scooped up
Constant Contact, a provider of email services, announced Wednesday that it's bought SinglePlatform, which helps small businesses market themselves across the Web. The pricetag is $65 million in cash, plus an earnout, that could bring the total deal to $100 million.
The purchase price was about $65 million in cash, subject to certain adjustments. Additionally, Constant Contact has granted approximately $5 million in cash and equity compensation for employee retention purposes and may be obligated to pay between $10 million and $30 million if SinglePlatform achieves certain revenue objectives over the next two years.
With the acquisition, it appears that Constant Contact is broadening its offerings to become a marketing company as well as an email service provider. Additionally, SinglePlatform creates leads for Constant Contact because it helps consumers find local businesses.
As part of the acquisition, Constant Contact will make it free for small businesses to create basic listings that will be delivered through SinglePlatform's publishing partners. This free offering will give it a competitive position against Yext, which also helps local businesses manage their marketing across multiple sites (in its case 50 websites, such as Yelp) from one central location. Yext charges about $40 a month, or $500 a year.
Yext just raised $27 million for a $270 million valuation, some 5.4 times the $50 million in revenue the company is estimating it will generate this year.
SinglePlatform raised $4.45 million in venture financing from DFJ Gotham Ventures, New World Ventures, First Round Capital and RRE Ventures.
Here's the Constact Contact release:
Constant Contact®, Inc. (NASDAQ: CTCT) today announced that it has acquired privately owned SinglePlatform, which helps small businesses get discovered through web and mobile searches. SinglePlatform gives small business a single place to update their critical business information and delivers that information across a publishing network that reaches more than 200 million consumers per month. This network includes sites like Foursquare, New York Times, YP, and UrbanSpoon, as well as the business's social media profiles, website, and mobile site. SinglePlatform lets small businesses quickly distribute rich content so that consumers can find it at the very moment they are looking to make a purchase decision. The SinglePlatform offering complements the current Constant Contact suite of online engagement marketing tools by helping small businesses reach and engage their next customer even earlier in the customer lifecycle.
"There are hundreds of online and mobile sites that consumers use to find local businesses and make purchase decisions. It's literally impossible for time-starved small businesses to keep up with all of them," said Gail Goodman, CEO of Constant Contact. "Almost 50 percent of searches for local businesses happen without a specific business in mind1 so it's absolutely critical that small businesses are listed everywhere to ensure they are found when and where consumers are looking. SinglePlatform makes that incredibly simple - update your information once, and it's delivered to all of the important search engines, apps, directories, and review sites."
As part of the acquisition, Constant Contact will make it free for small businesses to create basic listings that will be delivered through SinglePlatform's publishing partners. In addition, SinglePlatform will continue to offer its paid-for Digital Storefront(TM) product, allowing small businesses to add rich content to their listings, such as menus, products and services, photos, and pricing, to give consumers the information they need when they are making purchase decisions.
"The internet is shifting from a listing directory to a discovery engine," said Wiley Cerilli, CEO of SinglePlatform. "The first step is making sure your listing is available wherever people are searching. The real magic happens when rich business information - menus, product photos, videos - is delivered at the moment that people are making a purchase decision. SinglePlatform's Digital Storefront is designed to do just that, getting small businesses in front of more people with the type of information that drives new customers and increased sales."
SinglePlatform will continue to operate out of its New York City offices. All of SinglePlatform's employees will join the Constant Contact team, and Cerilli will join the Constant Contact executive team as vice president and general manager, SinglePlatform, reporting directly to Goodman.
"We're thrilled to have the talented SinglePlatform team join Constant Contact. SinglePlatform is just as passionate about small business success as we have always been," said Goodman. "I look forward to introducing our half a million small business customers to their offering and sharing the benefits of our suite of engagement marketing tools with SinglePlatform's rapidly growing user base."
To learn more, please go to www.constantcontact.com/singleplatform.
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Founded in 2006, Yext is the next Yellow Pages, offering superior local services to users, advertisers and publishers. Nearly 20,000 customers are now connected to Yext Calls, the company's flagship advertising service that sends local businesses pay-per-action phone calls. Dozens of leading publishers have installed Yext Numbers, the company's local search monetization system. Yext is fanatically focused on perfecting the local advertising experience, an enormous unsolved problem with incredible potential.
Our mission is to produce the best local search results everywhere.
"The Local Search Problem"
Today, people use hundreds of different sources for local information. If you wanted to find a spa, you might check Google, Yahoo!, Bing, SpaFinder.com, Yelp, MapQuest, TomTom Navigation, Foursquare and that's just the beginning. To provide you with this information, each of these local search tools has its own database that stores basic listing data like business name, address, and phone number, and enhanced information like pictures, descriptions, promotions and more. Since each source has its own database, there are 100s of databases of local information out there. But the problem is, they are totally disconnected, and whenever data changes, they quickly fall out of sync. In fact, on average, 6% of listings change each month, and the end result is that more than 20% of local search return factually incomplete information to end users. The end result is very frustrating for businesses and users.
Everybody Wins with Yext PowerListings
Yext PowerListings solves this huge problem by centralizing local search results across all those different sites with one system. It lets large and small businesses centrally control information across platforms, producing the best local search results for users everywhere. PowerListings helps businesses appear in the most possible local searches withguaranteed presence, stand out and look great with enhanced content like photos, descriptions, and real-time promotions in their listings, and track it all with full analytics. PowerListings is the only system with any of these features, and the results are awesome.
The PowerListings model is a "triple win" for businesses, publishers and users. Businesses get the most out of local search, publishers get compensated to accept great content, and users get the best information. Everybody wins.
Over 30,000 businesses use PowerListings to get the most out of local search every day.
Learn about our PowerListings Network, our state-of-the art network that updates information at blazing speeds.
Learn more about how PowerListings can help your small business get the most out of local search.
Learn more about how PowerListings can help your brand get the most out of local search.
We think big, we learn fast – and we get stuff done. We are powered by an incredibly talented group of employees who work to produce the best local search information everywhere.
We are hiring the best and brightest to come join us on our mission. Check out our open positions.
We are fortunate to be backed by some of the best investors in the world – Sutter Hill Ventures (Palo Alto, CA),Institutional Venture Partners (Menlo Park, CA), and WGI investments (New York, NY). Yext was founded in 2006 by Howard Lerman, Brian Distelburger and Brent Metz, and is located in New York, NY.