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Upland Software Buys PostUp For $35 Million

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Upland Software Buys PostUp For $35 Million

Cloud-based enterprise work management company Upland Software Inc (NASDAQ: UPLD) announced Monday that it acquired the email platform company PostUp for $35 million. 

What Happened

PostUp is expected to generate annual revenue of $11 million and to be "immediately accretive" to Upland's adjusted EBITDA per share, according to the press release.

Upland said it drew $30 million in new term debt and $10 million of revolver debt as part of the acquisition. 

The Austin, Texas-based company also raised its full year 2019 guidance to reflect the acquisition, lifting the revenue, recurring revenue and adjusted EBITDA ranges.

The company expects full-year revenue between $202.4 million and $206.4 million and adjusted EBITDA between $73.7 million and $76.1 million. 

Why It's Important

“PostUp adds deep market expertise, sophisticated audience development solutions and an established customer base in media and publishing to our CXM solution suite,” Upland Software CEO and Chairman Jack McDonald said in a statement.

“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.”

What's Next

Upland Software shares were 8.82-percent higher at $43.56 at the close Monday. 

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Posted-In: Jack McDonald PostUpNews Guidance M&A Best of Benzinga

 

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