Payments infrastructure provider Paddle snaps up ProfitWell for $200m
UK-based Paddle, which provides payments infrastructure for software companies, has acquired ProfitWell, a provider of subscription metrics and retention software.
The deal, worth more than $200 million in cash and equity, “is the next step in our mission to remove the barriers to growth for Software-as-a-Service (SaaS) companies around the world”, Paddle says.
Paddle will integrate ProfitWell’s financial metrics, as well as its pricing and retention software, to allow subscription businesses to “plug into” Paddle and have their taxes, billing, payments and pricing done for them.
News of the acquisition comes hot on the heels of Paddle’s Series D round, which raised $200 million and valued the company at up to $1.4 billion.
The company says it will be working to integrate ProfitWell’s tech with its own products throughout the remainder of 2022.
All ProfitWell 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.
ProfitWell CEO Patrick Campbell will become Paddle’s chief strategy officer, while chief product officer Facundo Chamut will retain his role.
ProfitWell, headquartered in Boston, was founded in 2012 by Campbell. More than 30,000 businesses across 100 countries use ProfitWell’s suite of tools to analyse their subscription business before automating their pricing and retention efforts to support growth.