Upland Software (UPLD +12.7%) announced that it has acquired RightAnswers, Inc., an cloud-based knowledge management system. The transaction includes $17.2M in cash at closing, net of cash acquired, and a $2.5M cash holdback payable in one year (Indemnification claims, if any).
CEO Jack McDonald: "We are pleased to welcome RightAnswers and their valued customers and partners to Upland, This strategic acquisition is a great product addition for current Upland customers looking to enhance their customer service, IT support, and enterprise-wide collaboration capabilities."
Business Outlook; Upland raised its revenue, recurring revenue, and Adjusted EBITDA guidance ranges.
For the full year ending Dec. 31, 2017, Upland now expects to report total revenue to be in the range of $87.0 - $91.0M including recurring revenue in the range of $76.0 to $79.0M (+19% Y/Y). Adjusted EBITDA is expected to be in the range of $26.0 to $29.0M, for an Adjusted EBITDA margin of 31% at the mid-point, representing growth of 118% (Y/Y).
"We are today raising our long-term Adjusted EBITDA margin target to 40% (from 35%) to reflect the increased customer loyalty and operating efficiency we are seeing with UplandOne and as we scale," said Mr. McDonald.