Paddle acquires ProfitWell to automate payments infrastructure for SaaS companies
25 May, 2022, 03:00 ET
- Over 30,000 companies including Canva, Autodesk, Masterclass, and Notion use Boston-based ProfitWell's free subscription financial metrics and automatically optimize their pricing and reduce their cancellations using ProfitWell's other products
- All ProfitWell employees across the US and Argentina will join Paddle, with CEO Patrick Campbell joining the board and becoming Paddle's new Chief Strategy Officer
- The deal was valued at over $200m in cash and equity and is Paddle's first acquisition following its recent $200m Series D fundraise in April, which valued the firm at $1.4bn
LONDON, May 25, 2022 /PRNewswire/ -- Paddle, the complete payments infrastructure for SaaS companies, today announces it has acquired ProfitWell, the leading provider of subscription metrics and retention automation software. The deal - valued at over $200m in cash and equity - is the next step in Paddle's mission to remove the barriers to growth for SaaS companies around the world.
By integrating ProfitWell's industry-renowned free financial metrics, as well as its pricing and retention software, subscription businesses will now be able to plug into Paddle and have their taxes, payments, billing, reporting, retention, and pricing all done for them. Together, the combined business will use this "do it for you" approach to capitalize on the new wave of software that focuses on taking care of the problem instead of providing the tools to solve it, allowing subscription businesses the bandwidth to focus on what's important - their product, team, and customer.
ProfitWell is a Boston-headquartered subscription revenue automation company, founded in 2012 by Patrick Campbell. Over 30,000 businesses in more than 100 countries, including Canva, Autodesk, Masterclass, and Notion, use ProfitWell's suite of tools to analyse their subscription business before automating their pricing and retention efforts to support growth. ProfitWell's Metrics product is the number one real-time subscription reporting product on the market, Retain is the industry-leading automatic churn reduction tool, and Price Intelligently is synonymous with optimizing SaaS and subscription pricing. With both companies committed to the "do it for you" philosophy when it comes to the billing stack for SaaS businesses, the acquisition will seamlessly bring world-class subscriptions intelligence to Paddle's customers for free, and further solidify the firm's foothold in the US following the recent opening of its New York office.
The acquisition will be funded via Paddle's recent Series D fundraise, and will see ProfitWell continue to operate under its existing brand for the foreseeable future as the two companies work to integrate their respective products throughout 2022. All employees and offices across Boston, Salt Lake City, and Rosario will be retained, and a number of senior executives will join Paddle's leadership team; Patrick Campbell, CEO of ProfitWell, will become Paddle's Chief Strategy Officer; CPO Facundo Chamut will become Chief Product Officer; and Chief Revenue Officer Peter Zotto will join the commercial leadership team at Paddle while continuing in his role for ProfitWell.
Paddle's complete payments infrastructure for SaaS - which integrates checkout, payment, subscription management, and financial compliance processes - is used by over 3,000 software companies including BlueJeans by Verizon, MacPaw, Framer and TailwindLabs. Paddle's acquisition of ProfitWell follows a milestone year in 2021, which saw the company more than double its revenue growth, scale its team from 140 to 275, make senior hires including a new CMO, and announce the world's first alternative In-App Purchasing (IAP) system for iOS developers. It also follows Paddle's $200m Series D funding round in April of 2022, which valued the startup at $1.4bn.
Christian Owens, CEO and co-founder of Paddle, said:
"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 $400bn 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."
Patrick Campbell, CEO founder of ProfitWell, added:
"At ProfitWell, we're committed to supercharging revenue growth for some of the most exciting, forward-thinking businesses on the planet - and 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. Those shared objectives, combined with the natural cultural fit between our two companies, meant adding our subscription metrics and retention tools to the offering just made perfect sense. We're delighted to have the opportunity to bring our teams together to build a truly holistic, powerful payments infrastructure at the heart of the SaaS market."
Paddle, the payments infrastructure provider for B2B SaaS companies powers hyper-scale growth across acquisition, renewals and expansion. With Paddle, companies are finally able to transform their payments infrastructure into a strategic growth lever to respond faster and more precisely to every growth opportunity. Paddle has 275 employees serving over 3,000 software sellers in 245 countries and territories globally. Backed by investors including KKR, FTV Capital, Kindred, Notion, and 83North, Paddle aims to define the next wave of B2B SaaS leaders. Visit www.paddle.com or www.twitter.com/PaddleHQ for more information.
ProfitWell helps subscription companies with revenue automation by providing turnkey tools that automatically reduce cancellations and optimize their monetization. ProfitWell's free subscription financial reporting is also the leader in the industry, serving over 30,000 B2B and B2C subscription companies, including Autodesk, Canva, Masterclass, and Asics. ProfitWell has 90 employees across offices in Boston, Salt Lake City, and Rosario. They're also completely customer funded, meaning they haven't raised any money from investors or financial institutions. Visit https://www.profitwell.com/ for more information.
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