Paddle , a London-based startup, has made a pivotal acquisition to add more functionality to its payment platform for SaaS companies. The Paddle has acquired ProfitWell , for $200 million to carry out this goal. This acquisition was made because of the tools provided by ProfitWell. The company has developed retention and analytics tools for other enterprises. These tools will aid them in selling their products by adding subscriptions. The Paddle is currently focused on buying products and technology, but it is also developing an exciting user base. ProftWell's customer base includes big names in the SaaS industry like Hubspot , Canva, Notion, Prezi , Autodesk , and Zenefits . This is in addition to the 30,000 customer base that ProfitWell already had. All of this now will come under Paddle.
Considering the combination of cash and equity, the original deal was valued at more than $200 million, Paddle said. As a result, an alternative to Apple's native in-app payments flow for iOS publishers who want to take more direct control of their subscriptions and billing has been built and is ready to launch (provided Apple has opened up its platform or is required to). The Paddle has about 3,000 customers; beyond that, it has gained some notoriety for being a fly in the ointment for Apple.
Paddle's CEO and co-founder, Christian Owens , has stated that ProfitWell and Paddle share a common goal. They aim to work together to maximize their software customers' revenue by finding a better way to handle the financial and operational obstacles. These hindrances cost the companies unnecessary human resources and time, which is counterproductive. The motto for the enterprises is to 'do it for you, rather than have their customers solve their issues by themselves. Owens believes that this acquisition will considerably increase the value of their offering. The enterprise aims to create an unmatched subscription metrics product in the market. This will be bolstered by its reputation as a renowned authority on growing revenues in the $400 billion SaaS industry. Owens added that he and his team are very excited to have Patrick and his team on Paddle's board. They look forward to achieving their joint vision of automatically running and growing SaaS businesses.
Nonetheless, ProfitWell also seems excited about this new move. The CEO of ProfitWell, Patrick Campbell, will be joining the Paddle team as its chief strategy officer. And ProfitWell's co-founder, Facundo Chamut, will become the startup's chief product officer. All the employees of ProfitWell will now be working for Paddle.
Patrick Campbell has stated that both the enterprises share a common vision of increasing the revenue growth for some of the most exciting businesses on the planet. In addition, they aim to help thousands of software-related companies and avoid the operational hurdles that might arise in the way of growth. These share objectives become a natural, cultural fit for both companies, thereby adding to their subscription metrics and retentional tools. Campbell said this opportunity would be holistic, and they together can create a robust payments infrastructure at the center of the SaaS market.
About Paddle
The Paddle is a London-based payments infrastructure provider targeting SaaS companies. It was founded in 2012 by Christain Owens and Harrison Rose. So far, the company has seen two acquisitions. The company has a total of 11 investors, which includes names like FTV Capital, Kindred Capital, 83North, Kohlberg Kravis Roberts and Notion Capital.
About ProfitWell
The Greater Boston Area, New England-based company, ProfitWell, provides business intelligence solutions and tools that help business growth. The company's founders are Aaron White , Christopher O'Donnell , Facundo Chamut , and Patrick Campbell . It includes a software platform with expertise in positioning, positioning strategy, marketing analytics, and saas metrics.
