Paddle Pursues SaaS Supremacy with £160m ProfitWell Acquisition

Over 30,000 businesses in more than 100 countries, including Canva, Autodesk, Masterclass and Notion, use ProfitWell’s suite of tools to analyse their subscription business.

Payment infrastructure player Paddle is propelling itself forwards with the acquisition of US subscription metrics software provider ProfitWell for $200 million (£160 million).

Following its Series D financing of $200 million earlier this month, Paddle says the deal is in cash and equity, and will help it “remove the barriers to growth for SaaS companies around the world”.

ProfitWell is headquartered in Boston and was founded in 2012 by Patrick Campbell. Over 30,000 businesses in more than 100 countries, including Canva, Autodesk, Masterclass and Notion, use ProfitWell’s suite of tools to analyse their subscription business.

London-based Paddle targets SaaS businesses. The fintech unicorn says it can integrate checkout, payment, subscription management, invoicing, international taxes and financial compliance processes.

It doesn’t assemble and maintain a stack of payments-related apps and services, Paddle acts as a merchant of record for its customers.

Paddle naturally reckons things will go well with ProfitWell. The latter offers various products. Metrics is for subscription reporting; Retain is an automatic churn reduction tool; and Price Intelligently is for SaaS and subscription pricing.

The acquisition will add subscriptions intelligence to Paddle customers “for free”.

Paddle explains: “Together, we will use this ‘do it for you’ approach to capitalise on the new wave of software that focuses on taking care of the problem instead of providing the tools to solve it, allowing subscription businesses the bandwidth to focus on what’s important – their product, team, and customer.”

Keeping hold of customers in such a manner is nothing new of course. US-based payments firm Stripe is a success story with its range of offerings. Recent examples from Stripe include apps, a data pipeline, financial connections and crypto payouts.

Anyway, according to Paddle, it will be working with ProfitWell to integrate the two companies and their respective products throughout the remainder of 2022.

“All 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.

Campbell will become Paddle’s Chief Strategy Officer; CPO Facundo Chamut will become Chief Product Officer; and General Manager Peter Zotto will join the commercial leadership team at Paddle while continuing in his role for ProfitWell.

How well all this turns out remains to be seen, but Paddle sees positive times ahead and cites Gartner, which reckons the SaaS industry, worth $397 billion (£321.4 billion) in 2021, is expected to grow to $692 billion (£560.2 billion) in 2025.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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