iContact, a provider of email marketing services like newsletter creation and distribution, just raised $40 million in its second round of funding spearheaded by JMI Equity.

The email marketing technology is designed for small businesses to help them track email marketing effectiveness — including opens and clicks — as well as offering an automatic way to create and distribute newsletters and the like. The company provides the software to about 65,000 companies.

The Durham, N.C.-based company was founded in 2003 by UNC-Chapel Hill computer science graduate Aaron Houghton. It is currently headed by co-founded and CEO Ryan Allis, another UNC-Chapel Hill graduate.

Brad Woloson and Jit Sinha of JMI Equity will join iContact’s board of directors as part of the deal. The funds are pegged for marketing and sales growth and back-end technology development.

iContact has raised $18.3M in investment from NC IDEA, Updata Partners, and North Atlantic Capital, according to its website. Vonage and LG Electronics are among the companies listed as their clients.

[Photo: uzvards]