Paddle, a payments infrastructure firm for SaaS businesses, has acquired subscription metrics and retention automation software provider ProfitWell.
According to Paddle, the deal is valued at over $200m in cash and equity and is the ‘next step’ in Paddle’s mission to remove the barriers to growth for SaaS firms globally.
Paddle remarked that by integrating ProfitWell’s free financial metrics and its pricing and retention software, subscription companies will now be able to plug into Paddle and have their taxes, payments, billing, reporting, retention and pricing all done for them.
ProfitWell claims that its Metrics product is the number one real-time subscription reporting product on the market, while its Retain solution is the ‘industry-leading automatic churn reduction tool’, whilst the company’s Price Intelligently product is apparently synomous with optimising SaaS and subscription pricing.
The acquisition will be funded through Paddle’s recent Series D fundraise and will see ProfitWell to continue to operate under its existing brand for the foreseeable future as the two firms work to integrate their products throughout the rest of the year.
Paddle is coming off a stellar 2021, after it more than doubled its revenue growth, scaled its team from 140 to 275 and made senior hires including a new CMO, and also announced the world’s first alternative in-app purchasing system for iOS developers.
Paddle CEO and co-founder Christian Owens said, “Paddle and ProfitWell share a common goal: maximising our software customers’ revenue by taking care of the operational and financial obstacles that cost unnecessary time and manpower. Both companies aim to ‘do it for you’, rather than just help you solve it.
“That’s why we’re thrilled to announce we’re acquiring ProfitWell. Having created the number one subscription metrics product in the market, and cemented its reputation as a renowned authority on revenue growth in the $400bn SaaS industry, ProfitWell will add considerable value to our offering. We couldn’t be more excited to have Patrick and the team on board helping us achieve our mission of running and growing SaaS businesses automatically.”
ProfitWell CEO Patrick Campbell added, “At ProfitWell, we’re committed to supercharging revenue growth for some of the most exciting, forward-thinking businesses on the planet – and by joining forces with Paddle we see an opportunity to do even more. Paddle shares our mission to help thousands of software businesses avoid the operational hurdles that stand in the way of growth by taking these problems on completely ourselves.
“Those shared objectives, combined with the natural cultural fit between our two companies, meant adding our subscription metrics and retention tools to the offering just made perfect sense. We’re delighted to have the opportunity to bring our teams together to build a truly holistic, powerful payments infrastructure at the heart of the SaaS market.”
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