AUSTIN, Texas--(BUSINESS WIRE)--Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based enterprise work management software, has acquired PostUp, a leading provider of email and audience development solutions for publishing and media brands. PostUp is an important addition to Upland’s Customer Experience Management (CXM) solution suite. The acquisition adds approximately $11 million in annualized revenues and will be immediately accretive to Upland's Adjusted EBITDA per share.
“Moreover, the transaction is immediately accretive to Adjusted EBITDA per share and takes Upland to a $205 million annualized revenue run rate. As this transaction demonstrates, our acquisition pipeline is robust, and we are actively pursuing additional opportunities to build out our solution suites.”
“PostUp adds deep market expertise, sophisticated audience development solutions, and an established customer base in media and publishing to our CXM solution suite,” said Jack McDonald, chairman and CEO of Upland Software. “Moreover, the transaction is immediately accretive to Adjusted EBITDA per share and takes Upland to a $205 million annualized revenue run rate. As this transaction demonstrates, our acquisition pipeline is robust, and we are actively pursuing additional opportunities to build out our solution suites.”
PostUp’s sophisticated email and audience development solutions help companies in the media and publishing sector to develop and grow their audiences, drive deeper audience engagement, and monetize their communications channels by generating new advertising and subscription revenue streams.
“We are thrilled to welcome PostUp’s customers and team members to Upland,” said Jed Alpert, Upland’s Executive Vice President and General Manager of CXM Solutions. “PostUp’s market leading capabilities establish audience identity through email capture, browser push, and actionable insights from integration with Google Analytics data to create hyper-targeted audience segments. This powerful technology will benefit current Upland CXM customers, as well as add to our growing media and publishing verticals.”
The purchase price paid for PostUp was $35.0 million in cash at closing, net of cash acquired. Upland expects the acquisition to generate annual revenue of approximately $11.0 million, of which $10.8 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as inconsequential for the remainder of 2019. The acquisition is within Upland's target price range of 5-8x pro forma Adjusted EBITDA and will generate at least $5.0 million in Adjusted EBITDA annually once fully integrated. For the remaining stub period of the quarter ending June 30, 2019, Upland expects PostUp to contribute approximately $2.1 million of total revenue and approximately $0.4 million of Adjusted EBITDA as Upland integrates PostUp into model. The acquisition will be immediately accretive to Upland's Adjusted EBITDA per share.
In conjunction with this acquisition, $30.0 million of new term debt was drawn and $10 million of revolver debt was drawn, taking Upland’s gross debt outstanding from $281.4 million to $321.4 million with debt, net of cash on hand, now at approximately $307 million at a maximum interest rate of LIBOR + 400 basis points (currently at approximately 6.5%).
About Upland Software
Upland Software (Nasdaq: UPLD) is a leader in cloud-based enterprise work management software. Upland provides seven enterprise cloud solution suites that enable more than one million users at over 9,000 accounts to win and engage customers, automate business operations, manage projects and IT costs, and share knowledge throughout the enterprise. All of Upland’s solutions are backed by a 100% customer success commitment and the UplandOne platform, which puts customers at the center of everything we do.
PostUp is a leading provider of email and audience development technology and services to the publishing and media industries. With a proven services team, award-winning platform, and hand-picked partners, PostUp delivers personalized communications that drive engagement and increase revenues. To learn more, visit www.postup.com.
The CoSine Group acted as exclusive financial advisor to PostUp.