Cloud-based enterprise work management company Upland Software, Inc. (UPLD) announced Tuesday that it acquired Kapost for $45 million in cash at closing with a $5-million cash holdback payable in 12 months.

What Happened 

Kapost will now be referred to as Upland Kapost.

Upland said it expects the acquisition to generate annual revenue of approximately $15 million, of which $13.5 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting that's estimated at $2.2 million for the remainder of 2019.

Why It's Important 

“Kapost brings an established enterprise customer base, experienced team, and sophisticated content operations platform to our sales and marketing solutions,” Upland CEO Jack McDonald said in a statement.

“Moreover, this transaction is immediately accretive to adjusted EBITDA per share and takes Upland to a $220-million annualized revenue run rate. Our acquisition pipeline is robust, and we are actively pursuing additional opportunities to build out our solution suites." 

What's Next 

Upland shares were up more than 5 percent at $49.92 at the time of publication Tuesday.