Austin’s Upland Software plans $119M stock offering

Austin tech company Upland Software says it expects to raise $119 million with a secondary stock offering.

The company said it is selling 3.5 million shares of common stock at $34 per share. The underwriters for the offering will also have an additional 30-day option to purchase up to 525,000 shares of common stock at the same price.

The company said the proceeds from the stock offering will go towards continuing its acquisition strategy, as well as for general corporate purposes. The offering is expected to close by Friday.

Upland Software makes cloud-based work management software that is used by companies for a range of internal operations. Those include automation of human resource processes, sales team performances, web content management and time and expense management.

Austin software veteran Jack McDonald founded Upland Software in 2013. The company went public in November 2014, raising $46 million in its initial public offering of stock.

The company has grown through acquiring more than 20 smaller software companies.

In its most recent earnings report, Upland software said it had a second quarter revenue of $71.3 million, a year-over-year increase of 35%.

The company said in its earnings call that it likely would pause merger and acquisitions for the remainder of the year, but could restart in the fourth quarter. McDonald, Upland’s chairman and CEO, said during the call that the company has an active pipeline of potential acquisition opportunities.

“The pipeline is strong. We are seeing seller interest. We’ve got a lot of call activity, both our M&A team, and I’m involved with personally in terms of nurturing the pipeline that we had in place pre-COVID,“ McDonald said on the call. ”So I think 2021 is going to be a banner year for acquisitions for us.“

In February, Upland Software bought Localytics, a Boston-based mobile engagement platform for $67.7 million. The purchase was the company’s 26th acquisition.

“Our acquisition pipeline remains robust, and we are actively pursuing additional opportunities to build out our cloud offerings,” McDonald said in a written statement at the time.

In November, the company also announced it had taken a $190 million loan to fund future acquisitions.

Other recent deals for Upland include the October purchase of San Jose-based software platform Altify for $84 million and the $25.4 million purchase of Canada-based InGenius, which makes computer telephony integration solutions.