Online marketing firm Constant Contact acquired US-based online loyalty platform CardStar on Thursday for an undisclosed amount, helping investors including telecom corporation Verizon to an exit.
Launched in 2008, CardStar had raised about $2m from Verizon’s corporate venturing division, Verizon Ventures, as well as venture capital (VC) firm Acta Wireless and VC fund Amplifier Venture Partners.
CardStar develops a mobile application that promotes to, and consolidates loyalty cards and coupons for its users, which currently number more than two million. Constant Contact will continue to operate the application, viewing the acquisition as a route to expanding its business from email marketing towards an all round marketing service for small companies.
Gail Goodman, chief executive officer of Constant Contact, said: "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."