* Co revises FY adj EBITDA down sharply
* Deal to add $10 million to 2013 rev
* Shares down more 5 pct
June 13 Online marketing company Constant
Contact Inc said it bought privately owned
SinglePlatform for $65 million in cash and cut its full-year
earnings forecast, sending its shares down 5 percent.
The company said its 2012 adjusted EBITDA will be lower than
it expected as it invests to scale and take advantage of the
growth potential of SinglePlatform, which helps small businesses
promote their products and services online.
It now expects a full-year adjusted EBITDA of between $35.4
million and $36.7 million, down from its previous forecast of
$45.8 million to $46.9 million.
Constant Contact, which provides online marketing tools and
surveys, said it also granted an additional $5 million in cash
and equity to help retain SinglePlatform employees.
The company does not expect the deal to have a material
impact on its second-quarter revenue.
In April, it had forecast second-quarter revenue of between
$61.7 million and $62.0 million.
However, the deal will add more than $10 million to its 2013
revenue, it said.
Constant Contact will provide free basic listings for small
businesses through SinglePlatform's publishing partner network.
Constant Contact shares were at $18.50 on Tuesday morning on