SMTP buys GraphicMailStaff writer ▼ | October 21, 2014
SMTP, Inc., a provider of cloud-based email services, has completed the acquisition of GraphicMail, a European and South African based provider of integrated email solutions.
14 geographic regions 35,000 end-users
SMTP expects the acquisition will add scale to the business, accelerate revenue growth, provide significant long-term strategic benefits and will be immediately accretive to earnings. In connection with the acquisition, SMTP paid $5.1 million in cash and stock at the time of closing and will pay up to an additional $0.8 million in cash and stock pursuant to an earn-out provision which is primarily tied to achieving certain revenue levels in 2015.
For additional details about the acquisition, please review the company's current report on Form 8-K filed with the Securities and Exchange Commission on October 20, 2014.
GraphicMail is the second acquisition closed by SMTP this year. In August, SMTP acquired SharpSpring, a marketing automation provider that offers a fully integrated CRM and call tracking functionality and competes with Hubspot and Marketo. The intent is that the GraphicMail acquisition will also provide global distribution for the company's SharpSpring and SMTP relay products. ■