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SharpSpring Jumps on Deal to Be Bought by Constant Contact

Private-equity-backed Constant Contact agreed to pay $17.10 a share cash for marketing-technology company SharpSpring.
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SharpSpring  (SHSP) - Get Report shares jumped on Tuesday after the cloud-based marketing-technology company agreed to be bought by Constant Contact, an online marketing firm.

Constant Contact is backed by private-equity firms Clearlake Capital and Siris Capital. The $240 million deal valuation includes debt outstanding.

SharpSpring recently traded at $16.93, up 20%. In 2021 through Monday's close, the stock had fallen 13%.

Constant Contact will pay $17.10 for each share of SharpSpring, Gainesville, Fla. The purchase price is a 21% premium to Monday’s closing price of $14.11.

The transaction is expected to close in the third quarter of 2021, subject to conditions including a vote of SharpSpring holders.

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SharpSpring’s platform is designed for small and medium-sized businesses and is often delivered by digital marketing agencies, the companies said.

“Constant Contact and SharpSpring share a mission to help small businesses succeed,” said Frank Vella, chief executive of Constant Contact, Waltham, Mass.

The deal would combine Constant Contact's e-mail and e-commerce offerings with SharpSpring’s suite of revenue-growth and marketing-automation tools, he said.

In other technology news Tuesday, the European Union said that it had begun an antitrust investigation of Alphabet’s  (GOOGL) - Get Report search unit Google to determine whether it has broken EU competition rules.

Specifically, the European Commission is looking at whether Google “favors its own online display advertising technology services in the ad-tech supply chain, to the detriment of competing providers of advertising technology services, advertisers and online publishers.”