NEW YORK (TheStreet) -- Shares of Endurance International Group (EIGI) - Get Report are falling by 18.75% to $10.83 in mid-morning trading on Monday, after the provider of cloud-based platform solutions announced it is acquiring Constant Contact (CTCT) for $1.1 billion.
Endurance believes the acquisition will expand its position as a leader in the small business marketing space and enhance its operational and financial scale.
The company will purchase Constant Contact, a Waltham MA-based online marketing tools provider, for $32 per share in cash. The deal represents a premium of approximately 23% over Constant Contacts closing price of $26.10 on October 30.
Additionally, Endurance International reported its 2015 third quarter earnings results this morning.
The Burlington, MA-based company posted earnings of 36 cents per share on revenue of $190.3 million for the most recent quarter. Analysts surveyed by Thomson Reuters had forecast for earnings of 33 cents per share on revenue of $191.02 million for the three month period ending September 30.
Separately, TheStreet Ratings team rates ENDURANCE INTL GRP HLDGS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate ENDURANCE INTL GRP HLDGS INC (EIGI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: EIGI