Upland Software announces acquisition, raises guidance.
INTERNET BUSINESS NEWS-(C)1995-2019 M2 COMMUNICATIONS
Upland Software, Inc. (Nasdaq: UPLD), a provider of cloud-based enterprise work management software, has acquired Cimpl, a cloud-based telecom expense management platform, the company said.
The addition of Cimpl to Upland's Project & Financial Management Solution Suite creates the market's first IT Financial Management Cloud (ITFM Cloud) with enterprise-class IT financial management and full lifecycle telecom expense management, enabling enterprises to measure, manage, and align IT and telecom assets and spending at scale. The acquisition adds approximately USD 8 million in annualized revenues and will be immediately accretive to Upland's Adjusted EBITDA per share.
Enterprise IT spending was over USD 3 trillion last year, with telecom spending representing 18% of the total. Against an increasingly complex background of legacy, on-premise and cloud-based spending, including owned and third-party IT, hardware, software and services, mobility and fixed telecom, machine to machine, and Unified Communications assets, enterprises struggle to achieve measurable and repeatable cost savings and strategic alignment with their broader digital business transformation objectives.
With Cimpl, Upland can address these objectives directly by offering a comprehensive ITFM Cloud that combines IT financial management (including Bill of IT, consumption and demand management, holistic application management, cloud cost management, visual modeling, call accounting, and showback/chargeback) with enterprise-class telecom expense management (from provisioning through usage, contract, and invoice management, to cost allocation and end-user IT and technology self-service capabilities). In addition, Upland's proven project & portfolio management platform enables IT and business decision makers to drive, manage, and measure complex digital business transformation initiatives.
The purchase price paid for Cimpl was USD 23.1 million in cash at closing, and a USD 2.6 million cash holdback payable in 12 months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of approximately USD 8.0 million, of which USD 7.4 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as USD 0.4 million for the remainder of 2019. The acquisition is within Upland's target price range of 5-8x pro forma Adjusted EBITDA and will...
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