We’ll use the majority of these new funds to make significant investments in sales and marketing, back-end technology, our product features and usability, global expansion, and of course our people that drive all of our success.
Durham, NC (Vocus) August 30, 2010
iContact, an industry leader in email marketing services for small and medium sized businesses, today announced that it has received a $40 million Series B strategic growth investment from JMI Equity, a private equity firm focused on software, internet and business services companies.
iContact is the largest privately held provider of email marketing solutions for small and medium sized businesses. Headquartered in Durham, North Carolina, iContact provides email marketing software to over 65,000 customers across the globe. Its feature-rich solutions simplify and automate the process of creating, sending and tracking email communications. Compared to other marketing channels, email marketing provides a higher return on investment per marketing dollar spent. Today there are 25 million small to medium sized businesses domestically, of which only five percent are using email marketing.
“We’ll use the majority of these new funds to make significant investments in sales and marketing, back-end technology, our product features and usability, global expansion, and of course our people that drive all of our success,” said Ryan Allis, Chief Executive Officer and Co-founder of iContact. “For us, this is just the beginning of building a company that will be here in North Carolina for many decades to come. The funds will enable us to better fulfill iContact’s vision of building a great global company based in North Carolina for our customers, employees and community.”
“We are very pleased to announce this investment in iContact,” said Brad Woloson, JMI General Partner. “Over the past decade, JMI has invested in online technologies that enable companies to market more effectively to their prospects and customers. We believe iContact has demonstrated the high growth and predictability of its Software-as-a-Service business model in this market.”
iContact has built an email marketing company with predictable, recurring revenue and scale at a low cost. Its product offerings help small and medium sized businesses create, send and track impactful email marketing campaigns, enabling them to cultivate stronger relationships with their prospects and turn their customers into lifelong repeat buyers. iContact also has many non-profit, association and political campaign customers who use the service to easily manage their databases and communicate with their donors, members and constituents. “
JMI has a track record of partnering with strong, growing online marketing companies,” said Aaron Houghton, iContact Co-founder and Executive Chairman. “We are confident that their connections, insights and industry expertise will provide us with new resources as we continue to deliver innovative email marketing solutions and as we look to expand the breadth and reach of our product offerings.”
“JMI has followed iContact for a number of years and we have been impressed by the Company’s continued execution and rapid growth, particularly in a challenging macro-economic environment,” said Jit Sinha, JMI Principal. “We look forward to working with Ryan and the iContact team to capture the substantial growth opportunities ahead.”
As part of the investment, Brad Woloson and Jit Sinha will join iContact’s Board of Directors.
Allen & Company served as financial advisor to iContact. DLA Piper served as legal counsel to iContact and Goodwin Procter worked with JMI.
About JMI Equity
JMI Equity is a private equity firm focused on investing in growing software, internet and business services companies. Founded in 1992, JMI has invested in 98 leading businesses in its target markets and has approximately $1.3 billion of committed capital under management. JMI provides capital for growth, recapitalizations, acquisitions and buyouts. Representative investments include DoubleClick, Eloqua, Empathica, The Search Agency, Undertone and Unica.
For more information on JMI, visit http://www.jmiequity.com .
With more than 65,000 customers, iContact provides email marketing for small to medium sized businesses and non-profits. iContact allows for easy creation of email newsletters, surveys and autoresponders. Market leaders like Vonage, International Paper, LG Electronics, and ReMax, use iContact to build stronger relationships with their customers and prospects at a fraction of the cost of traditional marketing methods.
iContact, designed for the small business market, is available at http://www.iContact.com; iContactPlus, a suite of custom and managed services designed for mid-sized organizations, is available at http://www.iContactPlus.com.
Chuck Dohrenwend or Kelly Rapoport
The Abernathy MacGregor Group, for JMI Equity
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