Austin-based Upland Software plans $50 million IPO

Sep 8, 2014
Austin American Statesman

Austin-based Upland Software, which was created by acquiring several small software companies, has filed to raise up to $50 million in an initial public offering


Upland was launched in 2013 by Silverback Enterprise Group, which is led by veteran software executive Jack McDonald


Silverback, which is backed by $50 million from Austin Ventures, builds enterprise software companies by making acquisitions and developing new technology


McDonald formed Upland by combining three smaller cloud-based software companies in the project management and work management business


Upland then added a fourth company — Filebound, a Lincoln, Neb.-based provider of cloud-based workflow automation and document management software — and has since acquired New Jersey-based Comsci and San Francisco-based Clickability


The company’s software is used by more than 1,200 businesses in industries including financial services, retail, technology, manufacturing and government


Upland’s tools are aimed at helping workers increase productivity, collaborate, manage content, work more efficiently and track resources and projects


In January, Connecticut-based private equity firm Activant Capital invested $15 million in Upland, which officials said would allow the company to expand its products and purchase additional companies


Primary shareholders in the company include ESW Capital, with a 25 percent pre-IPO stake; Austin Ventures, with a 20 percent stake; McDonald with a 19 percent stake and Activant, with 7 percent


For the six months ended June 30, Upland’s revenue grew 70 percent to $32 million. Adjusted earnings increased 24 percent to $3 million as the company invested in sales and marketing and quadrupled research and development expenses


Upland plans to trade its stock under the symbol UPLD on the New York Stock Exchange. William Blair and Raymond James are the joint bookrunners on the deal. Pricing terms were not disclosed


Austin has had just one other IPO this year. Q2 Holdings, which develops software for banks, raised $101 million in a March public offering



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