Austin, Texas (April 24, 2017) – Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based Enterprise Work Management software, today announced that it has acquired RightAnswers, Inc., an award-winning, cloud-based knowledge management system. Upland today also raised its 2017 guidance to reflect the RightAnswers acquisition and raised its long-term Adjusted EBITDA margin target to 40%.
“We are pleased to welcome RightAnswers and their valued customers and partners to Upland,” said Jack McDonald, Chairman and CEO of Upland Software. “This strategic acquisition is a great product addition for current Upland customers looking to enhance their customer service, IT support, and enterprise-wide collaboration capabilities.”
“We’re excited to join Upland both because of the great product fit, and because of our shared vision of 100% customer success,” said Jeff Weinstein, President and CEO of RightAnswers. “The opportunity to leverage the UplandOne operating platform to amplify our product innovation, service, and support make this a great transaction for RightAnswers’ customers and partners,” said Mark Finkel, Chairman and Founder of RightAnswers.
The purchase price paid for RightAnswers was $17.2 million in cash at closing, net of cash acquired, and a $2.5 million cash holdback payable in one year (a portion of which is available to satisfy 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 $9 million, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting. The acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and will be immediately accretive to Upland’s Adjusted EBITDA per share.