Austin’s Upland Software keeps growing, acquires St. Louis tech firm
Austin-based Upland Software is acquiring Missouri-based software maker Second Street Media.
Upland Software paid $25.4 million in cash at closing, with an additional $5 million cash holdback planned in the next 12 months, according to the company.
Founded in 2013, Upland Software makes cloud-based work management software that is used by companies for a range of internal operations including automation of human resource processes, web content management, time and expense management, and sales team performances.
The company was founded by Austin software entrepreneur Jack McDonald and went public in November 2014, when it raised $46 million in its initial public offering. Upland Software has grown rapidly since its founding, making more than 20 acquisitions.
Second Street Media was founded in 2007 in St. Louis, and makes an audience engagement platform. The software, which is used by a range of companies, lets businesses to operate contests and create interactive content. The company has a catalog of 700 templates and customizable sweepstakes, contents, brackets and quizzes.
Second Street will be integrated into Upland’s customer experience management product suite, which already includes email and mobile messaging software. Upland estimated Second Street will add about $9.4 million per year to its revenue.
“Our customers need to deliver content experiences consumers enjoy interacting with and benefit from,” McDonald said in a written statement. “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.”
Matt Coen, co-founder and president of Second Street, called the acquisition “a great opportunity for Second Street and our customers.”
“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.” Coen said in a written statement.
The acquisition is just the latest in a long line for Upland Software. In February, the company bought Localytics, a Boston-based mobile engagement platform for $67.7 million. In 2019, Upland purchased San Jose-based software platform Altify for $84 million and Canada-based InGenius, which makes computer telephony integration technology, for $26.4 million.
In August, the company sold about 3.5 million shares of common stock in a stock offering to raise about $119 million. The company said the offering would go toward its acquisition strategy and general purposes.
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