Nasdaq-listed Upland Software Inc has acquired Australian VC-backed cloud-based enterprise software firm Panviva as it seeks to expand its presence within the knowledge management market.
The purchase price for the acquisition was $23.3 million, including $19.8 million in cash at closing and a $3.5 million cash holdback payable in 12 months, according to a statement.
Upland said the price was within its target range of 5-8x pro forma adjusted EBITDA, and it was expected that Panviva will generate at least $3.4 million in adjusted EBITDA annually once fully integrated into Upland.
Upland expects the acquisition to generate annual revenue of approximately $7.5 million, all of which is recurring and will be subject to reductions for deferred revenue discount as a result of the generally accepted accounting principles (GAAP), estimated at $2 million for the remainder of 2021.
To reflect the Panviva acquisition, Upland has also raised its full-year 2021 guidance, which expects total revenue to be between $300.8 and $312.8 million, and adjusted EBITDA to be between $94.8 and $100.8 million.
Panviva allows organisations to orchestrate knowledge into a single source through browsable workflows while ensuring compliance.
“This is important in industries where global regulations are heavily imposed and continue to fluctuate, such as utilities, healthcare, and financial services,” Panviva said in a separate statement.
Panviva had raised A$4 million in its Series B funding round from SBI Jefferies Asia Fund in 2013. The company subsequently secured more capital from investors including US-based Telstra Ventures and Indonesian VC firm MDI Ventures.
Jack McDonald, chairman and CEO of Upland, asserted that “there is robust growth” in the knowledge management industry. Research data firm Research and Markets estimates this market will grow at a CAGR of 16.8% through 2027.