Upland Software, Inc., a provider of cloud-based enterprise work management software, has acquired PostUp, a specialist in email and audience development for publishing and media brands, for $35 million in cash.
The acquisition adds roughly $11 million in annual revenue to Upland, resulting in “a $205 million annualized revenue run rate,” states Jack McDonald, chairman and CEO of Upland.
In addition, Upland expects PostUp to contribute roughly $2.1 million in revenue in the remaining stub period ending on June 30.
To finance the purchase, Upland drew $30 million of new-term debt an $10 million of revolver debt, taking the firm’s gross debt to $321.4 million --totaling $307 million net of cash on hand -- at 6.5% interest.
McDonald states that “PostUp adds deep market expertise, sophisticated audience development solutions, and an established customer base in media and publishing to our CXM solution suite.”
Last year, Upland acquired Adestra Ltd., a UK-based email service provider, for $56 million in cash at closing, adding to further consolidation in the email service field.
PostUp helps brands “establish audience identity through email capture, browser push” and gaining of insights from integration with Google Analytics data, states Jed Alpert, executive vice president and general manager of CXM Solutions for Upland.
In 2018, PostUp introduced browser push functionality to its technology platform.
This enables publishers to engage visitors directly without forcing them to sign up for emails or download an application, the firm says. In addition, they can drive this traffic back to their sites and generate ad- or paid-subscription revenue.
The CoSine Group acted as exclusive financial advisor to PostUp for the Upland transaction.