Robbins Arroyo LLP: Acquisition of Constant Contact, Inc. (CTCT) by Endurance International Group (EIGI) May Not Be in Shareholders' Best Interests

SAN DIEGO & WALTHAM, Mass.--()--Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Constant Contact, Inc. (NASDAQ: CTCT) by Endurance International Group (NASDAQ: EIGI). On November 2, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Endurance International will acquire Constant Contact. Under the terms of the agreement, Constant Contact shareholders will receive $32.00 in cash for each share of Constant Contact common stock.

View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/constant-contact-inc-nov-2015

Is the Proposed Acquisition Best for Constant Contact and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Constant Contact is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

As an initial matter, the $32.00 merger consideration represents a premium of only 27.8% based on Constant Contact's one-month average closing price. This premium is significantly below the average one-month premium of nearly 42.3% for comparable transactions within the past three years. Further, the $32.00 merger consideration is significantly below the target prices of five analysts ranging from $50.00 set by an analyst at National Securities on May 1, 2015, to $35.00 set by an analyst at Robert Baird on July 24, 2015. In the last three years, Constant Contact traded as high as $43.18 on March 4, 2015, and most recently traded above the merger consideration – at $36.23 – on April 30, 2015.

On July 23, 2015, Constant Contact reported strong earnings results for its second quarter 2015. Revenue for the quarter was $91.5 million, an increase of 12.6% compared to the same period last year. GAAP net income for the quarter was $3.8 million, an increase of 89.3% compared to the same period last year. Additionally, Constant Contact has beat consensus analyst estimates for adjusted EPS and adjusted net income in every quarter for the past nine quarters. In commenting on these results, Constant Contact Chief Executive Officer Gail Goodman remarked, "We delivered revenue in line with expectations and profitability that meaningfully exceeded our guidance for the quarter. We made good progress on multiple fronts in the second quarter, and are excited about the opportunities ahead. We remain confident in our strategy and ability to deliver continued revenue growth, while improving margins and expanding profitability."

In light of these facts, Robbins Arroyo LLP is examining Constant Contact's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

Constant Contact shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Constant Contact shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contacts

Robbins Arroyo LLP
Darnell R. Donahue
600 B Street, Suite 1900
San Diego, CA 92101
(619) 525-3990 or Toll Free (800) 350-6003
ddonahue@robbinsarroyo.com
www.robbinsarroyo.com

Release Summary

Do you own shares of Constant Contact, Inc.? Robbins Arroyo LLP is investigating claims on behalf of shareholders of Constant Contact.

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Contacts

Robbins Arroyo LLP
Darnell R. Donahue
600 B Street, Suite 1900
San Diego, CA 92101
(619) 525-3990 or Toll Free (800) 350-6003
ddonahue@robbinsarroyo.com
www.robbinsarroyo.com