Payments provider Paddle snaps up US subscription firm ProfitWell for £160m
Payments provider Paddle has acquired US subscription and retention automation software ProfitWell in a deal valued at over $200m (£160m) in cash and equity.
Paddle will incorporate ProfitWell’s financial analysis, pricing and retention tools into its own platform.
Paddle said it is funding the acquisition of ProfitWell via its $200m Series D funding round earlier this month. That raise also saw Paddle become the UK’s latest unicorn company with a valuation of $1.4bn.
London-based Paddle provides payment infrastructure for software as a service (SaaS) business. The acquisition will give Paddle customers additional tools for taxes, payments, billing, reporting, retention, and pricing.
“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,” said Christian Owens, CEO and co-founder, Paddle.
ProfitWell’s employees in the US and Argentina will join Paddle, while ProfitWell CEO Patrick Campbell will become Paddle’s chief strategy officer and join its board.
Founded in 2012, Boston-headquartered ProfitWell’s customers includes the likes of Canva, Autodesk, Masterclass, and Notion.
“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,” said Patrick Campbell, CEO and founder, ProfitWell.
Further moves from ProfitWell will see CPO Facundo Chamut become chief product officer, while chief revenue officer Peter Zotto continues his role and joins Paddle’s commercial leadership team.
ProfitWell will continue operating under its own brand.
Founded in 2012, Paddle is used by over 3,000 software companies and has secured $293m (£237m) in total funding. Recently, Paddle increased its headcount from 140 to 275 in its London and New York offices.
Competitors to the unicorn embedded finance platform Weavr, whose co-founder and CEO recently spoke to UKTN about not competing directly with banking as a service firms.