Paddle Seals Deal for $200M Acquisition of Subscription Retention Firm ProfitWell

Software-as-a-service (SaaS) payments infrastructure platform Paddle is acquiring subscription metrics and retention automation firm ProfitWell for $200 million in cash and equity. 

The deal marks Paddle’s first acquisition and will be funded from Paddle’s $200 million Series D fundraise earlier this month. ProfitWell will continue operating under its existing brand as both firms work on product integration through the end of this year, according to a press release on Wednesday (May 25).

See also: SaaS Platform Paddle Valued at $1.4B Following $200M Series D

Paddle will integrate ProfitWell’s software tools for financial metrics, pricing and retention to enable subscriptions businesses to access Paddle for taxes, payments, billing, reporting, retention and pricing services. 

“Paddle and ProfitWell share a common goal: maximizing 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 Paddle Co-founder and CEO Christian Owens.

Headquartered in London and founded in 2012 by Owens and Chief Strategy Officer Harrison Rose, Paddle is valued at $1.4 billion and serves over 3,000 software sellers in 245 countries and territories worldwide. The tie-up with ProfitWell further solidifies Paddle’s U.S. foothold following the recent opening of its New York office.

Based in Boston, Massachusetts, and founded in 2012 by CEO Patrick Campbell, ProfitWell is used by more than 30,000 businesses in over 100 countries, including Canva, Autodesk, Masterclass, and Notion.

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“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 Campbell.

“Paddle shares our mission to help thousands of software businesses avoid the operational hurdles that stand in the way of growth by taking these problems on completely ourselves. Those shared objectives, combined with the natural cultural fit between our two companies, meant adding our subscription metrics and retention tools to the offering just made perfect sense,” Campbell said.