Just off the back of its Series D fundraise, newly-minted payments infrastructure for SaaS businesses, Paddle has acquired the US-based subscription metrics and retention automation startup Profitwell. The deal is valued at over $200 million in cash and equity.
In the Series, D raise announcement Paddle CEO and co-founder Christian Owens stated, "Unfortunately, many SaaS companies still find their growth hindered by the operational challenges that arise when scaling; from handling subscriptions management or tax compliance to localising payment options in every market."
A very nice foreshadowing of what was to come some 15 days later. With the acquisition and integration of of ProfitWell's financial analysis, pricing, and retention tools, Paddle is clearly demonstrating ambitions well beyond "just" a payments provider.
“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," added Ownes. "Both companies aim to ‘do it for you’, rather than just help you solve it.”
ProfitWell will continue to operate under its existing brand for the foreseeable future as the two companies work to integrate their respective products throughout 2022.
On the acquisition, Profitwell CEO and founder Patrick Campbell, concludes, “We’re committed to supercharging revenue growth for some of the most exciting, forward-thinking businesses on the planet. By joining forces with Paddle, we see an opportunity to do even more. Paddle shares our mission to help thousands of software businesses avoid the operational hurdles that stand in the way of growth by taking these problems on completely ourselves.”