Oxford-based Adestra snapped up by USA-based Upland Software

By Nicky Godding

18 December 2018

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Adestra, a leading provider of enterprise-grade email marketing, transaction and automation SaaS solutions that supports more than 400 leading brands, has been bought by USA-based Nasdaq-listed Upland Software, a leading provider of cloud-based enterprise work management software, for $56.0 million.

Adestra, based in Oxford, will be combined with Upland's mobile messaging, customer engagement, and knowledge management solutions to create a powerful product suite serving the $5.9 billion CXM market which is forecast to grow 23 per cent per year to $16.9 billion by 2022, according to Upland.

"Adestra broadens Upland's product portfolio and builds our sales capacity and footprint," said Jack McDonald, chairman and CEO of Upland Software.

"Sophisticated enterprises need multiple intelligent, inter-connected communications channels that integrate with key platforms to meaningfully engage across the entire customer journey at scale," said Jed Alpert, SVP of Customer Experience Management Solutions at Upland Software. "Adestra's established presence in restaurant and retail, travel, media and publishing, and nonprofits, enhances our existing strengths in these industries, and the addition of their technology to Upland's Customer Experience Management suite will enable our customers to deliver consistently personalized, multi-channel experiences across their entire customer lifecycle."

The purchase price paid for Adestra was $56.0 million in cash at closing, net of cash acquired, and a $4.2 million cash holdback payable in 12 months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of approximately $18 million.

For the full year ending December 31, 2018, Upland expects reported total revenue to be between $147.2 and $149.2 million, including subscription and support revenue between $134.2 and $135.4 million, for growth in recurring revenue of 58% at the mid-point over the year ended December 31, 2017. Adjusted EBITDA is expected to be between $52.0 and $52.8 million, representing growth of 73% at the mid-point over the year ended December 31, 2017. The transaction will be immediately accretive to Upland's Adjusted EBITDA per share.

By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.