Two years after filing for an IPO, ExactTarget said Wednesday it would take venture capital money instead. The e-mail marketing company said it had secured $70 million in equity financing from Battery Ventures, Scale Venture Partners and Montagu Newhall. ExactTarget said it would use the influx of cash to accelerate its growth and expand outside the United States. The company said it would soon open its first international office.
ExactTarget also said it would delay plans for an IPO and withdraw the application it had submitted in December 2007 to trade on the Nasdaq under the symbol EXTG.
ExactTarget's software is used by companies, including CareerBuilder.com, Expedia.com, and Gannett (NYSE: GCI), to manage their e-mail marketing campaigns. The company says that despite the economic slowdown its sales continue to rise. On Tuesday, ExactTarget reported its 33rd straight quarter of revenue growth, as its sales jumped 40 percent. ExactTarget says it has now been profitable for over three years. The company has more than 410 employees.
Photo credit: ExactTarget
By Joseph Tartakoff