Vocus Buys iContact for $169 Million

PR software company Vocus has acquired iContact, an email and social media marketing company, for $169 million, “$91 million in cash, $9 million in common stock, and approximately $79 million in redeemable convertible preferred stock,” according to an announcement made late yesterday.

According to that release, iContact is used by 70,000 organizations. The purchase brings an email offering into its existing marketing suite.

There will be no changes to either company’s products and services, and the iContact staff will stay put in Raleigh-Durham, NC. (Vocus is based in Maryland.) IContact was founded in 2003 and has since garnered media coverage and received $50 million in venture financing.

The news came on the same day as Vocus’ earnings announcement.

GAAP revenue for 2011 totaled $114.9 million, a 19 percent increase over 2010. Non-GAAP revenue totaled $115.1 million. GAAP loss from operations was $4.2 million, an increase from 2010, which came in at a loss of $3.6 million.

GAAP revenue for Q4 2011 was $30.5 million, a year-over-year increase of 17 percent. GAAP income for the quarter was $393,000, up from a 2010 loss of $866,000. Non-GAAP operations income was $5.1 million for the quarter versus $3.4 million for the same time the previous year.

For more about the earnings announcement, including first time guidance for Q1 2012 and the remainder of the year, click here.

Publish date: February 29, 2012 https://dev.adweek.com/digital/vocus-buys-icontact-for-169-million/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT