Constant Contact Buys CardStar

Publicly traded Constant Contact Inc. has acquired privately owned CardStar Inc. Boston-based CardStar is a developer of mobile applications that extend the use of loyalty cards and mobile coupons for consumers. Terms of the deal were not released. CardStar was backed by investors including Amplifier Venture Partners, Acta Wireless and LaunchCapital.

PRESS RELEASE
Constant Contact®, Inc. (NASDAQ: CTCT), the trusted marketing advisor to more than 450,000 small organizations worldwide, has acquired privately owned CardStar Inc., the leading loyalty platform that helps shoppers stay connected to their favorite merchants. With over two million users, Boston-based CardStar is a leading developer of mobile applications that extend the use of loyalty cards and mobile coupons among consumers. The acquisition marks the latest milestone in Constant Contact’s evolution from an email marketing company to the leading provider of online marketing tools that help small businesses create and grow customer relationships. Financial details of the transaction were not disclosed.

“The CardStar loyalty platform takes advantage of the anytime, anywhere nature of mobile – making it an excellent complement to our growing suite of engagement marketing tools for small businesses. CardStar’s unique mobile application is a natural extension of our brand, bringing consumers and merchants together before, during, and after the sale to help drive repeat business,” said Gail Goodman, CEO of Constant Contact.

Constant Contact will continue to operate CardStar’s free mobile loyalty application, which is available on major mobile platforms, including iPhone®, Android®, and Blackberry®. The CardStar application consolidates membership and rewards cards on smartphones, letting consumers use a single application rather than a series of physical cards and enabling merchants to tailor mobile deals and information to their customers. Merchants can track purchase behavior to reward loyalty, simply and easily.

“For small businesses, it’s all about finding and connecting with their next customer, whether that customer is returning or brand new,” said Goodman. “Today’s consumers don’t just want – but expect – to access information and make decisions on the go, and they want to be rewarded for their support and loyalty. The CardStar mobile loyalty application lives at the intersection of these needs, letting consumers engage with businesses on the go and providing businesses with expanded opportunities for the kind of customer engagement that drives business results.”