Upland Software, Inc., a leader in cloud-based tools for digital transformation, has acquired Second Street Media, Inc., a leading audience engagement cloud software platform. Adding Second Street to Upland’s product portfolio will provide Upland’s customers the power to build promotions and email campaigns that grow revenue, customer databases and consumer engagement.
“Our customers need to deliver content experiences consumers enjoy interacting with and benefit from,” said Jack McDonald, chairman and CEO of Upland. “Contests and interactive content are a proven and effective way to engage, attract and retain consumers, and Second Street delivers this at scale. Matt and the team have developed strong products, have a complementary customer base, and we’re excited to welcome Second Street and their customers to Upland.”
With Second Street, businesses can quickly create powerful cross-channel, opt-in customer experiences with a catalog of 700 template and customizable sweepstakes, contests, brackets, quizzes and more. The results are better engagement, revenue growth and smart audience development to improve conversion and provide rich segmentation for future campaigns. Upland will integrate Second Street into its Customer Experience Management product suite, which includes email and mobile messaging solutions.
“Like Upland, Second Street is driven by delivering value for our customers. We take great pride in the success we have built and are excited to become part of a company with the strategy and resources to expand the value our customers get from audience engagement. Joining Upland is a great opportunity for Second Street and our customers,” said Matt Coen, co-founder and president of Second Street.
The purchase price paid for Second Street was $25.4 million in cash at closing (net of cash acquired), paid out of cash on hand, and a $5.0 million cash holdback payable in 12 months (subject to indemnification claims). The foregoing excludes any potential future earn-out payments tied to additional performance based goals.
Upland expects the acquisition to generate annual revenue of approximately $9.4 million, of which all is recurring, and will not be subject to reductions for deferred revenue discount as a result of GAAP purchase accounting. The price paid for the acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and it is expected that Second Street will generate at least $4.2 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.