Paddle, the London-based unicorn providing complete payments infrastructure for SaaS companies is today announcing its acquisition of ProfitWell which is the leading provider of subscription metrics & retention automation software. This deal which is valued north of $200M in cash and equity highlights a crucial landmark in Paddle’s mission in tackling the barriers to growth for SaaS companies worldwide.
Details about this acquisition
This acquisition will be financed via Paddle’s recent $200M Series D and will see ProfitWell continue its operations under its existing brand for the foreseeable future as the two firms work on integrating their respective products throughout 2022. Additionally, ProfitWell’s employees and offices across Boston, Salt Lake City & Rosario will be retained. Several senior executives will join Paddle’s leadership team and they include Patrick Campbell, ProfitWell’s CEO, who will become Paddle’s Chief Strategy Officer; CPO Facundo Chamut who will be the Chief Product Officer; and Chief Revenue Officer Peter Zotto who will join Paddle’s commercial leadership team while continuing in his role for ProfitWell.
Paddle’s co-Founder & CEO Christian Owens had previously mentioned that they had big plans for the year 2022. In an effort to capture the intense process of an acquisition, Paddle and Profitwell teamed up to produce a documentary explaining the story of how the deal came together.
What ProfitWell brings to Paddle
ProfitWell is a subscription revenue automation company that’s headquartered in Boston. Founded in 2012 by Patrick Campbell, the fintech currently services over 30,000 businesses in over 100 countries, including household names such as Canva, Autodesk, Masterclass and Notion. ProfitWell’s suite of tools is assisting these companies to analyse their subscription business prior to automating their pricing and retention efforts which steer growth.
Its metrics product is increasingly being recognised as the number one real-time subscription reporting product on the market. Retain is the industry-leading automatic churn reduction tool and meanwhile, Price Intelligently is synonymous with optimising SaaS models as well as subscription pricing. With both companies committed to doing it all in managing the billing stacks for SaaS businesses, the acquisition seems fit and will see the seamless integration of world-class subscriptions intelligence to Paddle’s customers for free. It will furthermore solidify the firm’s foothold in the US following the opening of its New York office just recently.
ProfitWell’s industry-renowned free financial metrics and its pricing & retention software for subscription businesses will have the ability to plug into Paddle and have their taxes, payments, billing, retention, reporting and pricing done altogether. The combined business will use its ‘do it for you’ approach to capitalise on the new wave of software focused on taking care of the problem instead of availing the tools to solve it. This will enable subscription businesses to have the bandwidth to focus on what’s important: their product, teams and customers.
Christian Owens, Paddle’s co-founder & CEO gave his take sighting, “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.”
Paddle, a fast-growing company
Paddle’s complete payments infrastructure for SaaS, which assists SaaS companies to avoid assembling and maintaining a complex stack of payments-related apps and services and acts as a merchant of record for its customers remains in use by over 3,000 software companies including TailwindLabs, BlueJeans by Verizon, MacPaw & Framer. Paddle’s acquisition of ProfitWell is following a milestone year in 2021 in which the company more than doubled its revenue growth, scaled its team from 140 to 275, made senior hires including a new CMO and announced the world’s first In-App Purchasing (IAP) alternative to Apple for iOS developers.
