Austin-based Upland Software, which secured $90 million in financing last year to allow it to continue its strategy of acquiring more companies, said Wednesday that it has acquired Massachusetts-based software company Omtool.
Founded in 2013 by Austin software executive Jack McDonald, Upland sells software tools aimed at helping workers increase productivity, collaborate, manage content, work more efficiently and track resources and projects. Upland's products are used by more than 2,500 customers and 250,000 workers worldwide, according to the company.
The company has grown by buying small software companies that have promising technology but are unlikely to break out as large independent players. Upland has made more than 10 acquisitions since its founding.
Upland said it paid $19.2 million for the latest acquisition, Omtool, which makes document capture, fax and workflow solution-related software. Upland said it expects the deal to add about $11 million to its revenue in 2017.
“We are pleased to welcome Omtool and their valued customers and partners to Upland,” McDonald, chairman and CEO of Upland Software, said in a written statement. “This strategic acquisition enhances our workflow automation and document management product family by adding powerful capture, security, and compliance capabilities and strengthens our position in the financial services, legal and health care verticals.”
Upland on Wednesday also raised its financial guidance both for the current quarter and for its longer-term prospects.
The company said that for the quarter ending March 31, it now expects revenue of $20 million to $20.8 million. The company said it has also raised its long-term margin target for EBITDA -- earnings before interest, tax, depreciation and amortization -- from 30 percent to 35 percent.
Upland Software's shares were up 3.6 percent, or 34 cents, to $9.65 on Wednesday morning.
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