Accretive acquisition of cloud-based customer reference solution is next step in building sales enablement software suite.
Upland Software, a leader in cloud-based Enterprise Work Management software, has announced that it has acquired RO Innovation, a leading cloud-based customer reference solution for creating, deploying, managing, and measuring customer reference and sales enablement content. RO Innovation will be combined with Qvidian, Upland’s powerful, cloud-based RFP and sales proposal automation solution, as Upland builds an industry-leading sales enablement product suite. The acquisition adds approximately $6.0 million in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share.
“We are pleased to welcome RO Innovation and their valued customers, users, and partners to Upland,” said Jack McDonald, chairman and CEO of Upland Software.
Jack added, “This acquisition is an important step in building out a sales enablement suite of solutions within our Workflow Automation product family.”
“The RO Innovation application is the fastest and easiest way to create, deploy, manage and measure customer reference and sales enablement content,” said Sean Nathaniel, CTO and SVP of Workflow Automation Solutions for Upland Software.
Sean added, “We look forward to integrating RO Innovation with Qvidian in order to serve the $400+ million annual sales enablement software market1 by delivering comprehensive workflow solutions tailored for high-growth sales organizations.”
The purchase price paid for RO Innovation was $12.5 million in cash at closing, net of cash acquired, and a $1.75 million cash holdback payable in 12 months (subject to indemnification claims). The foregoing excludes any potential future earn-out payments tied to additional performance-based goals.
Upland expects the acquisition to generate annual revenue of approximately $6.0 million, of which $5.0 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated at $0.5 million for the remainder of 2018. The acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and will generate an estimated $2.5 million in Adjusted EBITDA annually. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.