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Vocus’ Stock Price Drops After iContact Purchase

After it announced last week that it had acquired email/social media marketing tool iContact for $169 million, Vocus‘ stock took a steep fall, going from more than $22 on February 28 to about $14 on the 29th. The Motley Fool offered up a reason for the decline: “Not only is that a massive acquisition for a company of Vocus’ size, but shareholders also may have thought it a high price for a company that’s expected to reduce Vocus’ 2012 earnings.

“Investors cut more than 40 percent off Vocus’ stock price during the week,” the site added.

We asked Vocus for a comment on the drop. We got the following response from the company’s CFO Steve Vintz.

While the announcement of the iContact acquisition has created selling pressure on our stock, we believe the deal adds significant strategic and financial value to Vocus and helps position us as a leader in cloud-based marketing.   With this acquisition, Vocus now delivers the most critical marketing components to small and mid-sized business, including email, social, search and publicity.  We believe this acquisition helps optimize our products around the strong demand we are seeing in the marketplace and will accelerate our growth, which is something investors will want to see.

How important is email marketing to your work? And will you be using this new Vocus-owned offering?

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