Upland Software adds $90 million to continue its buying spree

The Austin software company will use the new financing to purchase small software companies with promising technology.

Posted November 16th, 2016

Upland Software is gearing up for another buying spree.

The fast-growing Austin-based company said Wednesday that it has secured $90 million in financing that will allow it to continue its strategy of acquiring more companies.

The financing is a credit facility with Wells Fargo Capital Finance and CIT Bank. The money can be used for acquisitions, general corporate purposes and to refinance existing debt, the company said.

The credit facility also allows Upland the option of issuing an additional $16 million in subordinated seller notes for acquisitions. The credit facility could potentially be used for the company to buy back as much as $8 million of its stock.

Founded in 2013 by veteran software executive Jack McDonald, Upland has grown by buying small software companies that have promising technology but are unlikely to break out as large independent players.

Jack McDonald, CEO of Upland Software

Upland, which has made at least 10 acquisitions, sells software tools aimed at helping workers increase productivity, collaborate, manage content, work more efficiently and track resources and projects.

Today, Upland's products are used by more than 2,000 customers and 235,000 workers worldwide.

McDonald said its acquisition strategy has allowed the company to grow its top-line revenue and expand its adjusted earnings.

"This new financing will enable us to leverage that success by accelerating our acquisition program and growing the award-winning family of cloud solution we can offer to our customers," McDonald said in a written statement.

Last month, Upland posted a year-over-year revenue increase, and lowered its losses in the third quarter.

For the quarter ended Sept. 30, the company reported a loss of $2.4 million, or 14 cents per share, compared to a net loss of $2.3 million in the same quarter last year.

The company's revenue for the quarter was $19.2 million, a 12.3 percent increase over the same quarter last year.

Upland's most recent purchase took place in March, when it bought mobile marketing firm Hipcricket for an undisclosed amount.

Based in Bellevue, Wash., Hipcricket uses mobile messaging to launch promotional campaigns.

Upland's new financing follows a $60 million credit facility it secured last year to make acquisitions.