Benzinga | Jan 10, 2022 09:06AM EST

Upland Software Acquires Objectif Lune For $29M In Cash At Closing

The purchase price paid for Objectif Lune and related entities (including the assets of a United States reseller) was $29.0 million in cash at closing (net of cash acquired), paid out of cash on hand, andThe purchase price paid for Objectif Lune and related entities (including the assets of a United States reseller) was $29.0 million in cash at closing (net of cash acquired), paid out of cash on hand, and a $5.3 million cash holdback payable in twelve months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of at least $13.0 million, including at least $12.0 million of recurring revenue, and will be subject to reductions for deferred revenue discount as a result of GAAP purchase accounting currently estimated at $4.0 million for the remainder of 2022 and $1.0 million for 2023. The price paid for the acquisition is within Upland's target range of 5-8x pro forma Adjusted EBITDA and it is expected that Objectif Lune will generate at least $5.2 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland's Adjusted EBITDA per share contributing at least $0.3 million of Adjusted EBITDA in the quarter ended March 31, 2022, and at least $2.6 million of Adjusted EBITDA for the full year 2022 ramping up quarterly as the acquisition is integrated into model across the calendar year.