Upland Software has acquired Altify. Altify will be a core platform of Upland’s Sales Optimization solution suite, the market’s first to combine opportunity and account management, sales process automation, customer reference management, and RFP and sales proposal automation, all supported by a robust content operations platform to ensure consistent messaging for high impact revenue teams.
The acquisition adds approximately $24M in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share. The purchase price paid for Altify was $84M in cash at closing. Upland expects the acquisition to generate annual revenue of approximately $24M, of which $22M is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as $2M for the remainder of 2019 based on a preliminary purchase price allocation and valuation of acquired deferred revenue. The acquisition is within Upland’s target price range of 5-8x pro forma Adjusted EBITDA, and Upland expects it to generate at least $10.8 million in Adjusted EBITDA annually once fully integrated.
The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share. In conjunction with this acquisition, $59M was drawn on Upland’s revolving credit facility, taking Upland’s gross debt outstanding to $409M, and with approximately $56M of cash on-hand, Upland’s net debt is now approximately $353M. The current terms of Upland’s credit facility permit the company to issue at least $100M of additional debt under the facility. The facility will also permit Upland to incur additional debt as Adjusted EBITDA continues to grow.
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