Upland Software sets $138M stock offering

Austin-based Upland Software expects to raise $138.6 million with a secondary stock offering, the company said in a news release.

The company, which makes software that is used by businesses to manage internal systems, said it is selling 3.3 million shares of common stock at $42 per share to the public.

The underwriters for the offering will also have a 30-day option to purchase an additional 495,000 shares of common stock at the public offering price.

The offering is expected to close on Monday, the company said. Upland plans to use the proceeds of the offering to continue its acquisition strategy and for general corporate purposes, the company said in a securities filing.

Upland went public in November 2014, when the company raised $46 million in its initial public offering.

The company has grown by buying smaller software companies that have promising technology but are unlikely to break out as large independent players. The company secured $90 million in financing in 2016 for acquisitions and closed on a $200 million credit facility in 2017 to continue on that path.

Upland has purchased more than 20 companies since being founded, including its $56 million buyout in December of Adestra, a U.K.-based firm specializing in email marketing, transaction and automation software. After posting negative net income in multiple quarters, Upland in March reported a profit of $2.7 million during its last quarter.

Last month, Upland acquired email solutions firm PostUp for $35 million, a deal that Upland CEO Jack McDonald said would add about $11 million in revenue per year. The company also expected to take on roughly $40 million in debt due to costs associated with the purchase, putting its total debt at $321.4 million.

The deal added roughly 60 employees to Upland's workforce, which totals more than 650 staff members, the company told the American-Statesman in April. PostUp, which is also based in Austin, is known for helping media and publishing companies with audience engagement strategies such as newsletters.