ExactTarget buys e-marketing firms iGoDigital and Pardot
November 5, 2012 11:42 AM
ExactTarget, a provider of e-mail marketing technology and services to hundreds of retailers including Best Buy Co. Inc., Nike Inc. and The Home Depot Inc., has acquired iGoDigital and Pardot LLC for their respective technology and expertise in personalized and business-to-business marketing.. ExactTarget is paying $21 million for iGoDigital and $95.5 million for Pardot in two cash-and-stock deals,.
“ExactTarget is doubling down on innovation in cross-channel marketing automation,” ExactTarget CEO Scott Dorsey says. He notes that iGoDigital and Pardot would enable ExactTarget to better serve e-retailers using e-mail, social media and other forms of web marketing.
Indianapolis-based iGoDigital, founded in 2004 by CEO Eric Tobias, helps retailers offer online product recommendations based on consumers’ online shopping behavior as recorded by software cookies. Its technology is also designed to offer what it calls “guided online selling,” such as site search results that list products an online shopper is likely to buy based on her known interests.
Tobias is joining ExactTarget and will lead the company’s web-based marketing product line, Dorsey says. IGoDigital, whose 40 employees will also join ExactTarget, counts among its clients Staples Inc., No. 2 in the Internet Retailer Top 500; Wal-Mart Stores Inc., No. 4; Scholastic Corp., No. 63; and Procter & Gamble Co., which is No. 759 in the Internet Retailer Second 500. Among ExactTarget’s existing clients, Best Buy is No. 11 in the Top 500; Home Depot, No. 42; and Nike, No. 72. Adam Blitzer, co-founder and chief operating officer of Atlanta-based Pardot, is joining ExactTarget as head of its b2b marketing automation products, Dorsey said. Pardot’s 115 employees are also joining ExactTarget, which has more than 1,500 employees..
Pardot’s clients include web measurement firm comScore Inc. and Restaurant.com, a marketing and gift card site for the restaurant industry.
ExactTarget has 34 clients in the Internet Retailer Top 500, 24 in the Second 500 and two in the Top 400 Europe. IGoDigital has two clients in the Top 500 and one in the Second 500.
For its second quarter ended June 30, ExactTarget posted a 42.0% increase in revenue, to $69.3 million from the same period a year earlier, as its net loss narrowed to $2.6 million from $3.7 million. For the first half of the year, revenue increased 43.6% year over year to $133.4 million, as its net loss widened to $7.3 million from $7.0 million.