SharpSpring Sells SMTP Relay Unit For $15 Million

SharpSpring, Inc. (NASDAQ: SHSP) disclosed that it sold its SMTP relay business unit to the Electric Mail Company for $15 million in aggregate consideration before any adjustments. The company indicated that it would provide additional financial details on its business, as well as, forecast when it announces its second quarter financial numbers in early August.

According to SharpSpring, the asset purchase agreement offered the Electric Mail Company its SMTP customers and certain other contracts, intellectual property rights, goodwill, and other assets connected with its SMTP business. The company indicated that all of its executives would remain with the company.

Aside from that, the company indicated it would offer support, as well as transition services in the next few months to ensure smooth operation and transfer of the business.

SharpSpring CEO, Rick Carlson, commented, "This transaction represents the continued execution of our strategy to strengthen our focus and alignment behind our marketing automation business. By divesting the SMTP business, we are able to strengthen our balance sheet and commit 100% of our resources to the success of our higher-growth marketing automation platform."

He continued, "In addition to divesting the SMTP business, we are also announcing that we have completed the migration of GraphicMail customers to the SharpSpring Marketing Platform. Today, more than 12,000 businesses are using the SharpSpring Marketing Platform to drive leads and revenue into their businesses. With our entire operations now streamlined, we can more effectively leverage our price and product advantages in the marketing automation market, and continue to capture significant market share from incumbent industry players like Hubspot, Marketo, Act-On and Pardot."