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Acer America
Acer America Corp. is a computer manufacturer of business and consumer PCs, notebooks, ultrabooks, projectors, servers, and storage products.


333 West San Carlos Street
San Jose, California 95110
United States


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Press Releases

December 21, 2018 |

Upland Software Acquires Adestra, Raises Guidance

Accretive acquisition brings $18 million in annualized revenue and adds core component to Customer Experience Management (CXM) Suite

Upland Software, Inc. (Nasdaq:†UPLD), a leader in cloud-based Enterprise Work Management software, announced it has acquired Adestra Ltd., a leading provider of enterprise-grade email marketing, transaction and automation software. Adestra’s cloud solution enables over 400 leading brands to understand and engage individual customers with relevant, timely, and effective communications. Adestra 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 year to†$16.9 billion†by 2022.1†The acquisition adds approximately†$18 million†in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share.

The acquisition of Adestra adds a fundamental component to Upland’s CXM Solution Suite, which now includes multi-channel messaging and email, automated mobile conversations via SMS, MMS, and RCS, mobile wallet functionality, Voice of Customer (VOC) and Voice of Employee (VOE) solutions, advanced knowledge management, and marketing automation and personalization. Upland will continue to buy, build, and integrate additional components to this CXM offering in order to enable more personalized customer experience, enhanced multi-channel engagement across the customer journey, deeper process automation, sophisticated analytics and reporting, and coordinated services delivery with CXM expertise.

“Adestra broadens Upland’s product portfolio, strengthens our CXM solution suite, and builds our sales capacity and footprint,” said†Jack McDonald, chairman and CEO of Upland Software. “Moreover, the transaction is immediately and meaningfully accretive to Adjusted EBITDA per share and takes Upland to an approximate†$190 million†annualized revenue run rate,” he added. “As this transaction demonstrates, our acquisition pipeline is robust, and we are actively pursuing additional opportunities.”

“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, of which approximately†$16.7 million†is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated at†$0.1 million†for the remaining half of†December 2018. The acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and will generate at least†$8.0 million†in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.

In connection with the acquisition of Adestra, Upland amended and expanded its credit facility from†$358.9 million†to†$400 million. Specifically,†$61.1 million†of new term debt was drawn, taking Upland’s gross debt outstanding from†$223.9 million†to†$285.0 million†with debt, net of cash on hand, now at approximately†$265 million†at a maximum interest rate of LIBOR + 400 basis points (currently at approximately 6.3%). Further details regarding the transaction can be obtained in the Form 8-K filed on†December 13, 2018.

Business Outlook

Upland also announced that it has raised its full-year 2018 guidance to reflect the Adestra acquisition, raising revenue, recurring revenue, and Adjusted EBITDA guidance ranges. The increase in 2018 revenue guidance below is net of an estimated†$0.1 million†reduction for a deferred revenue discount as a result of GAAP purchase accounting and all guidance adjustments are prorated for a closing date of†December 12, 2018.

For the quarter ending†December 31, 2018, Upland expects reported total revenue to be between†$42.5†and†$44.5 million, including subscription and support revenue between†$39.4†and†$40.6 million, for growth in recurring revenue of 62% at the mid-point over the quarter ended†December 31, 2017. Fourth quarter 2018 Adjusted EBITDA is expected to be between†$15.6†and†$16.4 million, for an Adjusted EBITDA margin of roughly 37% at the mid-point, representing growth of 64% at the mid-point over the quarter ended†December 31, 2017

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.

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