Upland Software Acquires Objectif Lune
Upland Software, Inc. (Nasdaq: UPLD) announced that it has acquired Objectif Lune Inc., an enterprise software leader in document composition and business communication automation. With the addition of Objectif Lune, Upland expands its global document workflow product library by adding the capability to modernize complex, paper-based documents for large-volume print production as well as automated delivery across web, email, and mobile platforms.
“We have long invested in the document workflow category and with Objectif Lune we can support even more of the document lifecycle for our customers,” said Jack McDonald, chairman and CEO of Upland. “This means we can help businesses produce more sophisticated paper documents where they are still required, replace paper with digital delivery where desired, and enable document digital transformation without requiring companies to change their legacy systems.”
While the business world becomes increasingly digital, many global companies still need to produce paper documents, either because of customer demand or to meet regulatory requirements. The challenge, however, for many companies is they need to find a way to compose, automate, and exchange documents based on content from their existing back-office systems to produce interactive business communications, while maintaining compliance and reducing production costs.
“Objectif Lune came from the idea that there had to be a better way to support paper-based business communications in the modern world while maintaining support for legacy business systems,” said Didier Gombert, CEO and Co-Founder of Objectif Lune. “Upland not only supports our mission but accelerates it due to the scale of their document workflow product library, experience delivering documents through the cloud, and the value being delivered through their partner channels.”
Upland’s document workflow products – which include AccuRoute, FileBound, InterFAX, and Upland Intelligent Capture – improve productivity and reduce costs by enabling digital transformation for any size business across industries such as healthcare, financial services, legal, government, and education.
The purchase price paid for Objectif Lune and related entities (including the assets of a United States reseller) was $29.0 million in cash at closing (net of cash acquired), paid out of cash on hand, and a $5.3 million cash holdback payable in twelve months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of at least $13.0 million, including at least $12.0 million of recurring revenue, and will be subject to reductions for deferred revenue discount as a result of GAAP purchase accounting currently estimated at $4.0 million for the remainder of 2022 and $1.0 million for 2023. The price paid for the acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and it is expected that Objectif Lune will generate at least $5.2 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share contributing at least $0.3 million of Adjusted EBITDA in the quarter ended March 31, 2022, and at least $2.6 million of Adjusted EBITDA for the full year 2022 ramping up quarterly as the acquisition is integrated into model across the calendar year.