UK payments infrastructure provider Paddle has acquired a subscription metrics and retention software company.
The deal, valued at more than $200 million in cash and equity, is “the next step in our mission to remove the barriers to growth for SaaS companies around the world”, according to Paddle co-founder and chief executive officer Christian Owens.
It also swiftly follows Paddle’s $200 million series D financing round, which gave the company a valuation of $1.4 billion.
ProfitWell, headquartered in Boston, US, provides a suite of tools for analysing and automating subscription business. Canva, Autodesk, Masterclass and Notion are among the 30,000+ businesses that use them.
The acquisition will unlock these businesses for Paddle and enable them to access its own payments infrastructure services for software companies, which also cover taxes, billing, reporting, retention and pricing.
Owens said: “From the beginning, Paddle and ProfitWell have shared a common goal: maximising revenue for businesses by taking care of the operational and financial obstacles that are costing countless software sellers unnecessary time and manpower every year.”
“ProfitWell will add huge value to our offering. We couldn’t be more excited to have [ProfitWell CEO Patrick Campbell] and the team on board helping us achieve our mission of powering growth for SaaS businesses everywhere.”