Category Archives: News

enChoice Announces Merger with Adjacent Technologies

A Powerful Synergy of Content Solutions

enChoice, Inc. today announced the successful completion of their merger with Adjacent Technologies. This merger creates a powerful synergy of experts and solutions, helping customers accelerate their digital transformation by leveraging content and optimizing business processes.

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Dave Parks, CEO of Adjacent Technologies and Tony White, CEO of enChoice sign the merger agreement.

The combined company will operate under the enChoice, Inc. brand, with plans to relocate their headquarters to Austin, Texas while maintaining current offices in Tempe, Arizona and Shelton, Connecticut.

enChoice will now provide solutions and support across the full spectrum of enterprises from mid-market to large scale entities. In particular, the merged group will concentrate on solutions leveraging the IBM Digital Automation (DBA) platform and a variety of ERP systems including Microsoft Dynamics.

Tony White, CEO of enChoice commented, “This merger, coupled with our recent acquisition of Image Tag, propels enChoice into a prime position to become a significant player in the Digital Transformation market, across a wide range of customers and technologies. enChoice plans to continue our aggressive growth strategies, both organically as well as through further acquisitions.”

Dave Parks, CEO and founder of Adjacent Technologies added, “Adjacent Technologies is excited to become part of the enChoice family. Our vision and goals are completely aligned, and our team brings significant capabilities and experience to the group which will enable us to leverage industry-leading capabilities such as a subscription model, cloud-based solutions and managed services. The critical mass we have achieved will allow us to accelerate our growth and enhance our profitability, while providing our collective customers with a larger and stronger team of experts and solutions.”

OpenText to Acquire Carbonite, Inc.

Cloud Based Data Protection and End-Point Security Solutions to Expand OpenText’s EIM Leadership

OpenText™ (NASDAQ: OTEX) (TSX: OTEX) today announced that it has entered into a definitive agreement to acquire Carbonite, Inc. (NASDAQ: CARB) (“Carbonite”), provider of cloud-based subscription data protection, backup, disaster recovery and end-point security to small and medium-sized businesses and consumers.

“Cloud platforms and secured, smart end-points are essential Information Management technologies as businesses transform into Industry 4.0,” said Mark J. Barrenechea, OpenText CEO & CTO. “This acquisition will further strengthen OpenText as a leader in cloud platforms, complete end-point security and protection, and will open a new route to connect with customers, through Carbonite’s marquee SMB/prosumer channel and products. We are very excited about the opportunities that Carbonite will bring, and I look forward to welcoming our new customers, partners and employees to OpenText.”

“We entered Fiscal 2020 with a solid balance sheet and we are off to a strong start with the announced acquisition of Carbonite as part of our Total Growth strategy,” added OpenText EVP & CFO, Madhu Ranganathan. “We are excited by the opportunity to bring forth exceptional leadership in operational execution and integration capabilities to Carbonite. Once integrated, we expect to increase our annual recurring revenues, deliver strong cloud growth, and expand cloud margins and adjusted EBITDA. The resulting growth in cash flows will enable us to maintain a healthy balance sheet, deliver strong earnings, and continue to deliver consistent growth in dividends to shareholders.”

OpenText CEO & CTO, Mark J. Barrenechea and OpenText EVP, CFO Madhu Ranganathan will host a conference call today at 9:00 a.m. Eastern Time to discuss today’s announcement. Conference call details are included further below.

The acquisition of Carbonite is expected to extend OpenText’s leadership in the Enterprise Information Management (EIM) market by complementing OpenText’s security offerings in data loss prevention, digital forensics, end-point detection and response with the addition of Carbonite’s data protection and end-point security solutions. The acquisition also adds significantly to OpenText’s Cloud business and further complements OpenText’s routes to market, strong enterprise customer base in the Global10K, enhanced SMB and prosumer markets. 

About the Transaction and Terms of the Agreement:

– Tender offer to be commenced for all outstanding Carbonite shares for $23.00 per share in cash(1)

– Total purchase price of approximately $1.42 billion, inclusive of Carbonite’s cash and debt

– Total purchase price is approximately 2.8x TTM (Trailing Twelve Months) Carbonite GAAP revenues (as of September 30, 2019), inclusive of annualized full year reported Webroot GAAP revenues, a significant acquisition which closed in March 2019

– Expect significant expansion of cloud revenues, cloud margins, adjusted EBITDA and cash flows in Fiscal 2021

– Current Carbonite Annual Recurring Revenues (ARR) of 90%

– Accretive, and targeting to be on the OpenText operating model by end of Fiscal 2021

– Funded with OpenText’s existing cash on hand and revolver

– Estimated OpenText net leverage ratio at closing of approximately 2.5x, with a target to return to less than 2x net leverage during the 4-6 quarters post close of transaction

– Financial projections and target models will be provided upon closing of transaction

– Expect the transaction to close within 90 days of this announcement

OpenText, through a wholly-owned subsidiary, intends to commence the tender offer for all of the shares of common stock of Carbonite within 10 business days. Pursuant to the agreement, the tender offer will be followed by a merger to acquire any untendered shares. The tender offer is subject to the tender of a majority of Carbonite’s shares and certain other regulatory approvals and customary closing conditions. The transaction is expected to close within 90 days. 

Alfresco Acquires Integration Specialist pernexas

Acquisition Provides Seamless Connectivity Between SAP and Alfresco

Alfresco Software today announced the acquisition of Germany-based pernexas, a provider of connectors for seamlessly integrating the Alfresco Digital Business Platform with SAP NetWeaver®, SAP S/4 HANA®, and SAP Fiori®.

The acquisition strengthens Alfresco’s market leadership position in the enterprise content management market and provides customers with fully-certified, native integration with line-of-business SAP applications. Furthermore, SAP customers are now able to enhance their digital operations using content, process and governance services and derive greater value from their enterprise resource planning (ERP) investment.

Tony Grout, Chief Product Officer, Alfresco said: “With many joint Alfresco-pernexas customers using SAP ERP systems, we are thrilled with the acquisition of pernexas and the incorporation of its secure and reliable connexas product line in the Alfresco product portfolio. The connexas product line makes it easy for our customers to natively integrate their SAP ERP systems with our Digital Business Platform using an SAP-certified connector.”

Customers can benefit from a seamless connection between SAP and Alfresco, providing an unprecedented level of control and visibility of the unstructured information that always accompanies the structured data that SAP handles so well. Users can take advantage of these capabilities without leaving the applications with which they are familiar, meaning user adoption is easy and frictionless. Customers can also start a free trial of this Alfresco/SAP integration.

Grout added: “Making difficult things simple is core to Alfresco’s philosophy, and the benefits of the close integration can be achieved without installing anything on the SAP side.”

Volker Blaesig, Managing Director, pernexas, noted: “Joining Alfresco is a natural evolution as we continue to offer seamless integration solutions between Alfresco and the large SAP user base. The SAP landscape has been changing with greater focus on Cloud and Software as a Service (SaaS) business models and it makes sense that SAP customers will be looking to integrate with a cloud-native, open source Digital Business Platform.“

The Alfresco Digital Business Platform connects people, processes and systems seamlessly, and delivers content to the people who need it when they want it. This in turn enables enterprises to turn their content into knowledge through scalable processes built for their business, while protecting it with powerful governance capabilities. The Alfresco Digital Business Platform is a fully integrated platform that provides a flexible, agile framework that customers can use to build their own unique process and content centric digital experiences

Upland Software Announces Acquisition, Raises Guidance

Acquisition of InGenius establishes first Contact Center Productivity solution suite with native CRM agent communications, knowledge management, and customer sentiment analysis

Upland Software, Inc. (Nasdaq: UPLD) has acquired InGenius, a leading Computer Telephony Integration (CTI) solution for enterprise contact centers. With the addition of InGenius’ CTI platform, Upland can now offer the first Contact Center Productivity solution suite that provides a single pane of glass for all voice and CRM data, along with enterprise knowledge management and customer sentiment analysis solutions to drive improved contact center efficiency and customer experience. The acquisition adds approximately $9 million in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share.

“With InGenius, Upland extends its leadership in Customer Experience Management (CXM) solutions and can now offer the first multi-channel, knowledge-driven contact center agent productivity solution suite that integrates leading CRM and contact center platforms enabling enterprises to offer a personalized, real-time customer experience,” said Jack McDonald, chairman and CEO of Upland Software. “Moreover, this transaction is immediately accretive to Adjusted EBITDA per share and takes Upland to a $237 million annualized revenue run rate and an $89 million annualized Adjusted EBITDA run rate,” he added.

“We began the second half of 2019 with great momentum, beating the top of our Q2 guidance ranges on revenue and Adjusted EBITDA, closing two accretive acquisitions in Q2, and notching strong sales bookings,” said McDonald. “That momentum has continued, with two additional accretive acquisitions since the beginning of Q3 and continued strong performance,” he added. “Our acquisition pipeline remains robust; our war chest has been reloaded; we are active in the market for additional acquisitions; and, as our newly raised guidance today reflects, we look forward to a strong finish to 2019.”

Call center productivity software is at the nexus of the CRM and contact center software markets, enabling contact centers to deliver improved service and increased personalization with access to real-time information from across the enterprise and seamless integration with existing contact center workflows. With Upland’s Contact Center Productivity solution suite, customers can solve critical pain points by implementing integrated agent productivity solutions including the InGenius CTI platform that provides a single pane of glass for all voice and CRM related data, RightAnswers for enterprise knowledge management, and Rant & Rave for frontline engagement capabilities and real-time sentiment analysis.

“Contact center leaders are looking for more comprehensive solutions to increase agent productivity with robust CRM integration,” said Mounir Hilal, Upland’s chief customer officer and executive vice president of Project and IT Management Solutions. “Upland’s new Contact Center Productivity solution suite enables a stronger performing enterprise contact center through increased agent productivity, a better omni-channel customer experience, and improved management command over agent experience.”

The purchase price paid for InGenius was $26.4 million in cash at closing, and a $3.0 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 $9 million, all of which is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as $0.8 million for the remainder of 2019. The acquisition is within Upland’s target price range of 5-8x pro forma Adjusted EBITDA and will generate at least $4 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.

Business Outlook

Upland today also announced that it has raised its full year 2019 guidance to reflect the InGenius acquisition, raising revenue, recurring revenue, and Adjusted EBITDA guidance ranges. The increase in 2019 revenue guidance below is net of a reduction for a deferred revenue discount as a result of GAAP purchase accounting and all guidance adjustments are prorated for an effective closing date of October 1, 2019.

For the full year ending December 31, 2019, Upland expects reported total revenue to be between $213.8 million and $217.8 million, including subscription and support revenue between $199.0 and $202.2 million, for growth in recurring revenue of 47% at the mid-point over the year ended December 31, 2018. Adjusted EBITDA is expected to be between $78.8 million and $80.8 million, for an Adjusted EBITDA margin of roughly 37% at the midpoint, representing growth of 50% at the mid-point over the year ended December 31, 2018. The transaction will be immediately accretive to Upland’s Adjusted EBITDA per share.

Neopost changes its name to Quadient

Unified brand and global organization 
strengthen its focus on customers and the future

Neopost, a leader in business solutions for meaningful customer connections through digital and physical channels, announced today that it is changing its corporate business name to Quadient. The new branding strategy reflects the company’s dedication to helping clients better connect with their customers as interactions have become increasingly connected, personal and digital.

As customer expectations continuously evolve, customers expect immediacy and simplicity. To match this ‘always-on’ existence, building a strong connection with customers requires an experience that is personalized, readily-available, consistent, meaningful, convenient and secure—regardless of the channel. Unifying under a fresh and globally recognized brand reinforces the company’s drive for sustainable growth and continued commitment to delivering innovative solutions.

“In January 2019, we unveiled our new strategy aimed at growing our company and moving away from being a holding company to a focused, integrated organization,” said Geoffrey Godet, Chief Executive Officer of Quadient. “It was critical to align our corporate brand platform with this new strategy, using a purpose-driven brand to help businesses leverage our entire portfolio of solutions to simplify and solidify interactions with their customers. This change comes at a defining moment in our company’s history and is instrumental in unifying our global organization around a common aspirational brand.”

This change represents the realization of the new organization announced in January 2019. Quadient’s dedicated professionals better help businesses connect with customers across a growing number of channels by focusing on four key solutions: Customer Experience Management; Business Process Automation; Mail-related Solutions; and Parcel Locker Solutions. Quadient is committed to continuing to deliver a high-level of service to its customers, partners and vendors. 

Quadient is an inventive name addressing key elements driving customer connections today – starting from the moment a consumer first interacts with an organization to the moment they receive a product or service. Additionally, the company unveiled a new logo and new tagline, “Because connections matter”, that embodies the brand vision to be the driving force behind the world’s most meaningful customer experiences. Quadient has a proven track record for developing, deploying, and supporting dependable solutions.

The new brand identity will begin rollout on September 23, 2019.

UPLAND SOFTWARE ANNOUNCES ACQUISITION, RAISES GUIDANCE

Acquisition of Cimpl creates first IT Financial Management Cloud with enterprise-class Telecom Expense Management capabilities

Upland Software, Inc. (Nasdaq: UPLD) has acquired Cimpl, a leading cloud-based telecom expense management platform. 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 $8 million in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share.

“Acquiring Cimpl enables Upland to offer the market’s first IT Financial Management Cloud that combines IT and telecom expense management,” said Jack McDonald, chairman and CEO of Upland Software. “Moreover, this transaction is immediately accretive to Adjusted EBITDA per share and takes Upland to a $228 million annualized revenue run rate. Our acquisition pipeline is robust, and we are actively pursuing additional opportunities to build out our solution suites.”

Enterprise IT spending was over $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.

“Enterprises are looking for solutions that can help them accelerate their digital business strategy while keeping technology costs under control,” said Mounir Hilal, Upland’s chief customer officer and executive vice president of Project and IT Management Solutions. “Upland’s Project & Financial Management solution suite manages more than $7 billion in IT and telecom spend, more than 10.5 million assets and services, and over 1 million IT-related projects,” he added. “With Cimpl’s powerful telecom expense management platform, Upland delivers a unique enterprise-grade, solution suite that enables organizations to optimize technology investments and drive their continued digital business transformation.”

The purchase price paid for Cimpl was $23.1 million in cash at closing, and a $2.6 million cash holdback payable in 12 months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of approximately $8.0 million, of which $7.4 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as $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 generate at least $3.6 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.

Business Outlook

Upland today also announced that it has raised its third quarter and full year 2019 guidance to reflect the Cimpl acquisition, raising revenue, recurring revenue, and Adjusted EBITDA guidance ranges. The increase in 2019 revenue guidance below is net of a reduction for a deferred revenue discount as a result of GAAP purchase accounting and all guidance adjustments are prorated for an effective closing date of August 21, 2019.

For the quarter ending September 30, 2019, Upland expects reported total revenue to be between $54.1 and $56.1 million, including subscription and support revenue between $50.3 and $51.9 million, for growth in recurring revenue of 51% at the mid-point over the quarter-ended September 30, 2018. Third quarter 2019 Adjusted EBITDA is expected to be between $20.1 and $21.1 million, for an Adjusted EBITDA margin of roughly 37% at the mid-point, representing growth of 58% at the mid-point over the quarter-ended September 30, 2018.

For the full year ending December 31, 2019, Upland expects reported total revenue to be between $212.3 and $216.3 million, including subscription and support revenue between $197.5 and $200.7 million, for growth in recurring revenue of 46% at the mid-point over the year ended December 31, 2018. Adjusted EBITDA is expected to be between $78.2 and $80.2 million, for an Adjusted EBITDA margin of roughly 37% at the midpoint, representing growth of 49% at the mid-point over the year ended December 31, 2018. The transaction will be immediately accretive to Upland’s Adjusted EBITDA per share.

Xamcor names John Mancini as Strategic Markets Associate, continuing its M&A Growth & Success

Xamcor Inc., a leading M&A Brokerage service serving global Information Management companies, has named John Mancini, past President of AIIM, to the newly created role of Strategic Markets Associate for the company. John will help drive key market initiatives to build on Xamcor’s leading position as an M&A Specialist for Information Management Companies.

“Digital disruption is causing all companies to reconsider their M&A and exit strategies. John is known around the world as being a visionary who helps companies with this transition. He will bring to Xamcor his unique expertise in Content Management and the broader area of emerging technologies that can benefit through integration. We are excited to have a professional with the recognition and stature of John joining the Xamcor Team” said Paul Carman, Xamcor CEO.

“My focus is on helping Content Management, Intelligent Automation and Digital Transformation solution providers, who are all being challenged by Digital Disruption, improve the effectiveness of their growth strategies, marketing activities and positioning in the market. M&A is a key part of this process, and my partnership with Xamcor, a trusted M&A firm, can help bring a wider set of services to companies,” stated John Mancini.

John Mancini is the President of Content Results, LLC. He was President of AIIM — the leading association for information management professionals — for over 20 years, and prior to that, Chief Operating Officer at the American Electronics Association. He is a well-known author, keynote speaker, and advisor on information management, digital transformation and intelligent automation. He has authored more than 30 eBooks on a variety of topics. He can be found on Twitter, LinkedIn and Facebook as jmancini77.

Ricoh strengthens digital workplace capabilities with DocuWare acquisition

Ricoh Company, Ltd., (Tokyo, Japan) today announced a definitive agreement to acquire DocuWare, a leading provider of Content Services software.

Headquartered in Germany and the United States, DocuWare provides cloud and on-premise document management and workflow automation software to over 12,000 customers in more than 90 countries across the globe through a network of 600 partners.

David Mills, Corporate Senior Vice President, Ricoh Company Ltd, says: “We are intent on building a thriving business which meets the growing need of companies around the world to digitise their businesses and workplaces, wherever they may be. We see a strong demand from our customers to maximize the value of their documents and business content to support their growth. The agreement we have made with DocuWare, which has a market-leading, cloud-first content services offering, is a hugely significant step in meeting that need. We are delighted at the additional capabilities we will be able to offer current and new customers.”

Ricoh has a long-term existing partnership with DocuWare, and employs its software both internally in its own operations and with existing customers. Mills adds: “DocuWare takes the pain and cost out of business processes, helping reduce human error and, importantly, improve business efficiency to free-up valuable employee time. Our ambition at Ricoh is to ‘empower digital workplaces’. What that means in practice, is connecting people to information faster and more conveniently, improving communication and creativity; the synergy between Ricoh and DocuWare speaks directly to this ambition. DocuWare will operate as a standalone subsidiary of Ricoh and we are committed to maintaining and growing its hugely successful partner programme, through expanding its channel network and investing in further product development. DocuWare already seamlessly integrates with our new IM C series of multifunction printers, through Ricoh Smart Integration, providing customers with a simple, secure way of scanning documents and feeding them directly into a highly effective, intelligent workflow process.”

Mills continues: “As a long-time partner, Ricoh understands the power of DocuWare’s channel to deliver document management and workflow automation solutions to customers. Ricoh wants to strengthen and grow this route to market and is committed to helping and learning from DocuWare and its management team.

Dr. Michael Berger and Max Ertl, presidents of DocuWare, summarise: “DocuWare has a bold growth plan, and that includes enabling current and future partners with leading document management and workflow automation technology. Having Ricoh as a strong investor and owner gives us the certainty that we can achieve our goals and continue to be a reliable, trustworthy and innovative provider for the entire DocuWare partner and customer community.”

Ricoh has been investing in digital workplace services by growing both organically and through acquisition. The acquisition of DocuWare is in line with Ricoh’s strategy to grow its digital workplace transformation offering.

The deal with DocuWare is expected to close over Summer 2019, subject to receiving clearance from the relevant competition authorities in Germany and Austria and completion of other customary closing conditions. Following completion of the deal, DocuWare will operate as a subsidiary of Ricoh with Dr Michael Berger and Max Ertl remaining as presidents.

ABBYY Announces Intent to Acquire TimelinePI to Deliver Digital Intelligence for Enterprise Processes

Acquisition Expands ABBYY’s Digital IQ Capabilities by Combining Content and Process IQ

ABBYY today announced the intent to acquire Philadelphia, Pennsylvania-based TimelinePI. TimelinePI provides a comprehensive process intelligence platform designed to empower users to understand, monitor and optimize any business process.

The global process analytics market size is expected to grow to USD 1,421.7 million by 2023 according to Research and Markets. The acquisition of TimelinePI is intended as a strategic investment by ABBYY into the emerging process intelligence market, which is critical to truly understand the impact and effectiveness of business processes and opportunities for productivity gains from digital transformation investments. TimelinePI’s vision of combining the most versatile process mining and operational monitoring with cutting-edge, process-centric AI and machine learning will serve as a critical cornerstone to ABBYY’s Digital IQ strategy.

“Organizations are focused on digital intelligence to impact process, patient, business and customer outcomes. Process intelligence is required to truly understand the operational effectiveness of business processes and how well they support a business strategy,” commented Ulf Persson, CEO at ABBYY. “With TimelinePI, ABBYY will have the most comprehensive process intelligence platform for empowering companies to go beyond traditional text analytics and process mining to achieve true digital intelligence. With ABBYY’s advanced content analysis and natural language processing, the TimelinePI technology will achieve operational insights not available with traditional process mining tools.”

TimelinePI’s platform enables anyone to visualize, quantify and understand how processes behave by providing detailed insights into true performance, bottlenecks and risks. Its patent-pending Timeline Analysis approach is unique in its ability to handle the full range of business process types – from highly structured to ad hoc. This new approach to process intelligence allows healthcare providers, banks, insurance companies, government agencies and other customers to take control of their data and raise their Process IQ to achieve operational efficiency that improves the customer journey.

“Critical factors driving the success or failure of digital transformation projects include having a detailed understanding of an organization’s business processes,” said Scott Opitz, president and CEO of TimelinePI. “By gaining ABBYY’s deep understanding of content we are able to open a treasure trove of data to strengthen our offering and give companies the edge they need to operate more efficiently. We are excited to be joining ABBYY, combining our process mining, monitoring and predictive analytics capabilities with ABBYY’s rich Content IQ portfolio to enable our customers to achieve true process intelligence.”

Upon the completion of the transaction, ABBYY will continue to market and enhance the TimelinePI platform and offering to customers both separately and as part of new solution bundles as an extension of ABBYY’s current and future products.

Upland Software Acquires Kapost, Raises Guidance

Accretive acquisition adds $15 million in annualized revenues, strong customer base, and robust content operations solution for sales and marketing

Upland Software, Inc. (Nasdaq: UPLD), has acquired Kapost. Kapost is an important addition to Upland’s Enterprise Sales Enablement and Customer Experience Management (CXM) solution suites. The acquisition adds approximately $15 million in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share.

“Kapost brings an established enterprise customer base, experienced team, and sophisticated content operations platform to our sales and marketing solutions,” said Jack McDonald, chairman and CEO of Upland Software. “Moreover, this transaction is immediately accretive to Adjusted EBITDA per share and takes Upland to a $220 million annualized revenue run rate. Our acquisition pipeline is robust, and we are actively pursuing additional opportunities to build out our solution suites.”

Kapost’s cloud-based content operations platform unites revenue teams to speak in one voice across the customer journey by streamlining the content development process at scale. The platform’s open architecture, robust set of APIs, and deep collaboration capabilities help organizations better orchestrate all stages of content planning, production, and distribution. Advanced analytics enable organizations to pinpoint hidden gaps in their content strategy, track content performance, and measure ROI.

“We are thrilled to welcome Kapost’s customers and team members to Upland,” said Sean Nathaniel, Upland’s chief technology officer and executive vice president of Workflow Automation Solutions. “Kapost’s powerful technology and built-in artificial intelligence adds advanced end-to-end content operations capability to our enterprise sales and marketing solutions, allowing complex sales and marketing organizations to boost the impact, relevance, and return on investment of their content.”

The purchase price paid for Kapost was $45.0 million in cash at closing, and a $5.0 million cash holdback payable in 12 months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of approximately $15.0 million, of which $13.5 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as $2.2 million for the remainder of 2019. The acquisition is within Upland’s target price range of 5-8x pro forma Adjusted EBITDA and will generate at least $7.0 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.

Business Outlook

Upland today also announced that it has raised its second quarter and full year 2019 guidance to reflect the Kapost acquisition, raising revenue, recurring revenue, and Adjusted EBITDA guidance ranges. The increase in 2019 revenue guidance below is net of a reduction for a deferred revenue discount as a result of GAAP purchase accounting and all guidance adjustments are prorated for an effective closing date of May 24, 2019.

For the quarter ending June 30, 2019, Upland expects reported total revenue to be between $50.5 and $52.5 million, including subscription and support revenue between $47.2 and $48.8 million, for growth in recurring revenue of 45% at the mid-point over the quarter-ended June 30, 2018. Second quarter 2019 Adjusted EBITDA is expected to be between $17.9 and $18.9 million, for an Adjusted EBITDA margin of roughly 36% at the mid-point, representing growth of 47% at the mid-point over the quarter-ended June 30, 2018.

For the full year ending December 31, 2019, Upland expects reported total revenue to be between $209.0 and $213.0 million, including subscription and support revenue between $195.0 and $198.2 million, for growth in recurring revenue of 44% at the mid-point over the year ended December 31, 2018. Adjusted EBITDA is expected to be between $76.5 and $78.9 million, for an Adjusted EBITDA margin of roughly 37% at the midpoint, representing growth of 46% at the mid-point over the year ended December 31, 2018. The transaction will be immediately accretive to Upland’s Adjusted EBITDA per share.