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SharpSpring Acquisition

SharpSpring Acquisition: Key Details, Impact, and What Comes Next

February 13, 2025

Constant Contact's acquisition of SharpSpring marks a significant move in the digital marketing landscape. By integrating SharpSpring's advanced marketing automation tools, Constant Contact aims to enhance its CRM capabilities, providing small businesses with a more comprehensive suite of services. This strategic acquisition underscores the growing importance of robust marketing solutions in driving business growth and customer engagement.

What Is SharpSpring?

SharpSpring

Founded in 2014, SharpSpring offers a comprehensive suite of marketing automation and CRM solutions. Its core products include marketing automation, sales automation, and CRM tools, designed to streamline and enhance business processes. Unique selling points include a full-funnel solution that integrates marketing and sales automation, agency-specific features, and a cost-effective pricing model. SharpSpring stands out for its ease of use, robust integration capabilities, and positive customer testimonials.

Who Acquired SharpSpring?

Constant Contact is a prominent provider of digital and email marketing solutions, helping businesses create, send, and track email campaigns, manage social media marketing, and utilize other digital tools. Key products include email marketing, SMS marketing, social media marketing, ecommerce solutions, and event marketing. The company is known for its user-friendly tools and robust integrations, making it a trusted choice for millions of users. Constant Contact plays a significant role in aiding small businesses to grow through effective marketing strategies.

When Was SharpSpring Acquired?

Constant Contact completed its acquisition of SharpSpring on September 1, 2021. This acquisition aligns with ongoing trends in the marketing and CRM industry, where companies are increasingly integrating advanced CRM capabilities and marketing automation to offer comprehensive solutions to small and medium-sized businesses. The timing also reflects the industry's focus on enhancing customer relationship management and leveraging technology to drive business growth, especially in the context of the digital transformation accelerated by the COVID-19 pandemic.

Why Was SharpSpring Acquired?

  • Market Expansion: The acquisition of SharpSpring by Constant Contact is a strategic move to expand its market presence and enhance its offerings for small businesses. By integrating SharpSpring's marketing automation tools, Constant Contact aims to better serve its nearly 500,000 small business customers. Additionally, the rebranding and continued development of Lead Gen & CRM indicate an effort to attract sales teams and marketing professionals who need robust CRM and lead management tools.
  • Technology Integration: SharpSpring's cloud-based revenue growth and marketing automation platform will be integrated into Constant Contact's existing suite of digital marketing tools. This integration aims to improve customer engagement and marketing-driven results for small businesses. Key technological integrations include lead scoring, centralized CRM tools, real-time analytics, and AI-driven content generation and automation features.
  • Competitive Advantage: The acquisition provides Constant Contact with a competitive advantage by combining its best-in-class email and e-commerce offerings with SharpSpring's innovative marketing automation tools. This combination is expected to accelerate Constant Contact's product roadmap and enhance the tools available to modern-day marketers, thereby driving key revenue-generating activities. The rebranding and subsequent improvements also offer greater flexibility in licensing, which can attract smaller businesses by allowing them to scale their accounts as they grow.

Acquisition Terms

  • Acquisition Price: Approximately $240 million, including outstanding indebtedness. The transaction involved acquiring all outstanding common stock of SharpSpring for $17.10 per share in cash.
  • Payment Method: All cash transaction.
  • Key Conditions or Agreements:
    • The agreement was unanimously approved by the members of SharpSpring's Board of Directors.
    • The transaction was subject to customary closing conditions, including SharpSpring stockholder approval.
    • SharpSpring was delisted from NASDAQ as a result of the acquisition.
    • JMP Securities LLC acted as exclusive financial advisor and Godfrey & Kahn, S.C. acted as legal counsel to SharpSpring.
    • Lazard acted as financial advisor to Constant Contact and Sidley Austin LLP acted as legal counsel to Constant Contact.

Impact on SharpSpring

The acquisition of SharpSpring by Constant Contact has led to significant changes in operations and management. SharpSpring has been rebranded to Lead Gen & CRM, and its team has joined Constant Contact, ensuring continuity in development and support. The delisting of SharpSpring from NASDAQ marks a notable shift, aligning it more closely with Constant Contact's strategic goals. This integration aims to enhance the CRM and marketing automation capabilities available to small businesses, providing a more robust suite of tools for customer engagement and lead management.

Product offerings have also seen enhancements, with SharpSpring's advanced marketing automation tools now integrated into Constant Contact's platform. This merger promises new features such as improved lead scoring, real-time analytics, and AI-driven content generation. Employee reactions have been positive, with leadership expressing excitement about the added resources and growth opportunities. Customers are expected to benefit from the expanded capabilities, although specific reactions have not been detailed. For founders considering business transitions, tools like Sunset can assist in managing these processes compliantly, ensuring a smooth and efficient transition.