Payments tech firm Paddle has swooped to acquire US FinTech ProfitWell in a deal worth more than $200 million.
The London company, a provider of payments infrastructure for SaaS companies, became the UK’s latest unicorn earlier this month with a £162m fundraise – a similar figure to that paid for Boston-based ProfitWell. The deal is made up of cash and equity.
ProfitWell provides subscription metrics and retention automation software. Paddle says the deal is the next step in its mission to remove the barriers to growth for SaaS companies around the world, with subscription businesses able to have their taxes, payments, billing, reporting, retention and pricing all done on one platform.
Founded in 2012 by Patrick Campbell, ProfitWell says more than 30,000 businesses in more than 100 countries – including Canva, Autodesk, Masterclass and Notion – use its suite of tools to analyse their subscription business before automating their pricing and retention efforts to support growth.
All employees and offices across Boston, Salt Lake City and Rosario, Argentina will be retained, and a number of senior executives will join Paddle’s leadership team, with Campbell becoming Paddle’s chief strategy officer, chief product officer Facundo Chamut named in the same role and chief revenue officer Peter Zotto joining the commercial leadership team at Paddle while continuing in his role for ProfitWell.
The acquisition will also solidify Paddle’s foothold in the US following the recent opening of its New York office.
In 2021 Paddle more than doubled its revenue growth and scaled its team from 140 to 275.
“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,” said Christian Owens, CEO and co-founder of Paddle.
“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.”