Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of email marketer Constant Contact (Nasdaq: CTCT ) have plunged today by as much as 15% after the company announced an acquisition while also reducing its full-year guidance.
So what: Constant Contact has acquired privately owned SinglePlatform, a smaller company that helps small businesses get discovered through Web and mobile searches. Constant Contact paid $65 million in cash, plus another $5 million in cash and equity compensation for employee retention. If SinglePlatform hits certain revenue targets, Constant Contact will also have to pay an additional $10 million to $30 million.
Now what: Following the transaction, Constant Contact has updated its guidance. Second-quarter revenue shouldn't see any material impact, but the company will incur $1 million in acquisition-related expenses. SinglePlatform is expected to contribute about $1 million in revenue throughout the full year, and reduced its adjusted EBITDA forecast from a prior range of $45.8 million-$46.9 million to a new ballpark of $35.4 million-$36.7 million.
Interested in more info on Constant Contact? Add it to your watchlist by clicking here.