It’s not often that numbers are this forthcoming after an acquisition. But New York-based SinglePlatform, a one-stop-shop where local businesses can manage their presence on sites across the web from Foursquare to the New York Times, should be happy that the terms of its recent acquisition are being disclosed. This morning it was announced that the company, founded in 2010, has sold to email marketing provider Constant Contact for $65 million in cash “subject to certain adjustments.” The company will also get $5 million for employee retention and between another $10 million and $30 million if it meets revenue targets.
Constant Contact is a public company that launched in 1998. Constant Contact expects SinglePlatform, which manages 600,000 listings, to bring in $1 million of revenue in 2012 and $10 million in 2013. “We at Constant Contact have always had a disciplined investment strategy,” the company said on a conference call this morning. Constant Contact believes SinglePlatform has hit a “tipping point,” and “the company has demonstrated an ability to grow at exceptional rates, and we expect that to continue.”
SinglePlatform raised a total of $4.45 million from First Round Capital, RRE Ventures, DFJ Gotham, New World Ventures, Gunderson Dettmer, and Seamless founder Jason Finger. (SinglePlatform CEO Wiley Cerilli ran sales for 10 years at Seamless.) SinglePlatform raised a round most recently last summer, when it expanded its customer base from just restaurants to all small businesses.
Mr. Cerilli will stay on as head of SinglePlatform in New York, and was awarded 49,529 restricted shares which will vest on a three-year schedule if he sticks around. Constant Contact touted the SinglePlatform team’s record of scaling large companies on the conference call this morning. SinglePlatform will shift to a freemium model. Constant Contact expects demand for its products will overlap with demand for SinglePlatform’s service.
SinglePlatform’s sale represents a very tidy return, bringing hope to a city with a vibrant startup scene but few big exits to look up to–especially as we hear rumors of a startup winter.