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Endurance Keeps Up With The Competition With Constant Contact Deal

Endurance will acquire leading email marketing company Constant Contact for $1.1B.

The deal will help EIGI keep up with the competition, but it will not create any additional advantages.

Currently, the deal does not offer any potential upsides, but it's still far away from closing.

Web hosting giant Endurance International Group (NASDAQ:EIGI) announced earlier this week that it will acquire email marketing services company Constant Contact (NASDAQ:CTCT) for $1.1B in an all-cash deal. Both companies are significant players in their niches - Endurance is a major web hosting/services platform for SMBs, and Constant Contact leads the email marketing services market together with MailChimp.

Business Overview

Endurance and Constant Contact operate in very competitive markets with relatively low entry barriers for savvy software startups. Endurance uses a multi-brand strategy backed with several acquisitions that were targeted at expanding the company's portfolio to offer a broad range of online services for small- and medium-size businesses. These services include domain registration, web hosting, website creation tools and email services through Endurance brands such as, HostGator,, BigRock and more.

Endurance's biggest competitor is the infamous GoDaddy (NYSE:GDDY), which went public earlier this year and which offers a similar web toolset. The...