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ExactTarget buys interactive marketing firms for $116M

October 12, 2012

Newly public e-mail marketing firm ExactTarget Inc. is putting its riches to work, making $116.5 million in acquisitions to expand its interactive marketing portfolio.

Indianapolis-based ExactTarget said Thursday it paid $95.5 million for marketing automation firm Pardot LLC and $21 million for iGoDigital, which provides “predictive analytics” for retail websites.

Pardot is based in Atlanta, and iGoDigital is based in Indianapolis.

Founded in 2007, Pardot ranked 172 on Inc. magazine’s August list of America’s 500 fastest-growing private companies. It sells software that helps marketers create and manage online lead-nurturing campaigns. Clients include Restaurant.com, comScore and twilio.

iGoDigital was launched in 2004 by Eric Tobias, the chief technology officer at Carmel-based online battery supplier Technuity Inc. Tobias will lead ExactTarget’s expanded Web product line, the company said in a news release.

Retailers use iGoDigital's software-as-a-service platform to analyze customers’ online behavior and make personal recommendations. Staples, Walmart and Proctor & Gamble are among its users.

“With the addition of iGoDigital’s advanced Web capabilities and predictive analytics to the ExactTarget platform, we will continue to revolutionize marketing with a powerful suite of new applications to transform data into highly personalized, seamless experiences across e-mail, mobile, social media and the Web," ExactTarget CEO Scott Dorsey said in a statement.

ExactTarget went public in March, raising $161.5 million.

Pardot's purchase price included $85.5 million in cash and $10 million in ExactTarget common stock. iGoDigital drew $14.7 million in cash and $6.3 million in stock.

ExactTarget had 1,100 employees before the acquisitions. Dorsey and his brother-in-law Chris Baggott founded the company in 2000.

The company reported sales of $207.5 million in 2011, up 55 percent from the prior year. Its clients include Microsoft Corp. and Groupon Inc.
 

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