London-based Paddle, a provider of payments infrastructure for SaaS companies, announced on Wednesday that it has acquired Boston, US-based ProfitWell, a provider of subscription metrics and retention automation software. The deal, which is valued at over $200M in cash and equity, will help Paddle’s mission to remove the barriers to growth for SaaS companies around the world.
This acquisition will be funded by Paddle’s recently raised $200M (then, approx €188.98M) Series D funding.
The US-based company will continue to operate under its brand and all its 90 employees from offices across Boston, Salt Lake City, and Rosario will be retained. A number of senior executives will also join Paddle’s leadership team.
Patrick Campbell, CEO of ProfitWell, will become Paddle’s Chief Strategy Officer; CPO Facundo Chamut will become Chief Product Officer; and, Chief Revenue Officer, Peter Zotto will join the commercial leadership team at Paddle while continuing in his role for ProfitWell.
Business Intelligence solutions for companies
Founded in 2012 by Patrick Campbell, ProfitWell is a subscription revenue automation company. It has over 30,000 businesses in more than 100 countries, and counts Canva, Autodesk, Masterclass, and Notion among its clients. They use ProfitWell’s suite of tools to analyse their subscription business before automating their pricing and retention efforts to support growth.
The company claims that its product, Metrics, is the number one real-time subscription reporting product on the market. Its other products include Retain, which the company claims is the industry-leading automatic churn reduction tool, and Price Intelligently, synonymous with optimising SaaS and subscription pricing.
Founder Patrick Campbell says, “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.”
The acquisition of ProfitWell will bring subscriptions intelligence to Paddle’s customers for free and will further solidify the firm’s foothold in the US market following the recent opening of its New York office.
By integrating ProfitWell’s financial metrics, as well as its pricing and retention software, businesses will now be able to plug into Paddle and have their taxes, payments, billing, reporting, retention, and pricing done for them.
Currently, Paddle’s software is being used by over 3,000 software companies, including BlueJeans by Verizon, MacPaw, Framer, and TailwindLabs.
Paddle’s CEO and co-founder, Christian Owens, says, “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 $400B 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,” adds Owens.
Founded in 2012 by Christian Owens and Harrison Rose, Paddle offers SaaS companies a different approach to their payments infrastructure.
Instead of assembling and maintaining a complex stack of payments-related apps and services, Paddle acts as a merchant of record for its customers. This enables sellers to activate new business models and enter new markets with fewer operational and compliance issues.
With a suite of new platform features and integrations, including the announcement of an alternative In-App Purchasing (IAP) system for iOS developers, as well as rapid international expansion, Paddle has more than doubled its revenue growth since November, 2020, contributing to average annual revenue growth of over 175 per cent over the last four years.
The company has also scaled its team from 140 to 275 employees across offices in London and New York, with more hires expected to match its business acceleration. Backed by investors, including KKR, FTV Capital, Kindred, Notion, and 83North, Paddle aims to define the next wave of B2B SaaS leaders.