#United States #Waltham #Constant Contact #Clearlake #Icon Partners

Constant Contact Secures Investment for Growth

In a significant move poised to bolster its market leadership, Constant Contact, a renowned digital marketing software provider for small businesses and nonprofits, has announced the closure of a new strategic investment managed by Clearlake Capital Group. This transaction, structured through the Clearlake Icon Partners VI fund, aims to support the company's aggressive growth plans and enhance its product offerings in the competitive marketing automation landscape.

A New Chapter in Digital Marketing

Founded over three decades ago, Constant Contact has established itself as a pivotal player in the marketing automation industry, serving nearly half a million customers with tools for email marketing, social media engagement, and SMS messaging. The new capital raised through Clearlake will not only help Constant Contact to scale its existing operations but also enable it to pursue potential acquisitions that can expand its suite of services and geographic reach. The terms of this transaction remain undisclosed, but it is expected to greatly enhance the company's capabilities.

Growth and Profitability

Under Clearlake's stewardship, Constant Contact was reestablished as an independent entity following the acquisition of Endurance International Group in 2021. Since that time, the company has seen substantial organic growth and profitability. With the infusion of new capital, Constant Contact has been able to triple its topline growth from around 2% at the time of its carve-out to approximately 7% today, making significant strides in a competitive marketplace.

CEO Frank Vella noted that the investment comes at an essential juncture for the company, allowing it to refine its product strategy further and streamline operational efficiencies. By integrating advanced artificial intelligence solutions into its offerings, Constant Contact is well-positioned to enhance customer experiences and address the evolving marketing needs of today’s small business owners.

Committing to Small Businesses

Vella emphasizes that Constant Contact's mission is to simplify marketing for its customers. As marketing complexities grow, the company aims to relieve small business owners of those burdens, letting them focus on their core operations. The new investment is set to support these goals by enhancing the technology underlying the software platform and improving customer support services, ensuring that users can achieve better marketing results swiftly and efficiently.

Insights from Clearlake

Clearlake Managing Partners Behdad Eghbali and James Pade commented on the investment, expressing confidence that this equity capital will further solidify Constant Contact's leadership in marketing automation software. They highlighted the tireless commitment of Constant Contact’s management team in building an innovative product suite, particularly in the domain of AI-driven marketing solutions that cater specifically to the demands of small business owners.

The Future of Constant Contact

With a robust investment backing, Constant Contact is embarking on an exciting new chapter in its development. The combination of experienced leadership, innovative technology, and a solid financial foundation positions the company for sustained growth in the dynamic digital marketing sector. As Constant Contact continues to develop its offerings, it is committed to helping small businesses leverage the power of effective marketing without being overwhelmed by the complexities involved.

In conclusion, with its sights firmly set on the future, Constant Contact prepares to embrace growth opportunities, improve customer experiences, and reinforce its position as a leader in the digital marketing realm. The journey forward also promises to reflect the company's dedication to empowering small businesses through effective and streamlined marketing solutions.

About Constant Contact

Constant Contact specializes in making digital marketing accessible and effective for small enterprises and nonprofits worldwide. The company provides a powerful SaaS platform that simplifies the marketing process, enabling clients to achieve better outcomes in less time. With a commendable focus on technology and customer support, Constant Contact is dedicated to helping its users succeed.

About Clearlake Capital

Established in 2006, Clearlake Capital Group is a global investment firm with expertise across sectors such as technology, consumer goods, and industrials. Managing over $90 billion in assets, the firm aims to leverage operational expertise and long-term partnerships to drive value in the companies it invests in. Clearlake remains committed to supporting the ongoing success of Constant Contact through strategic investment and operational guidance.