Upland Software, Inc. (NASDAQ: UPLD), an Austin, Texas-based company that enables global enterprises to accelerate digital transformation with a cloud-based software library, received a $115 million strategic equity investment from HGGC.
The investment, in the form of a new class of convertible preferred stock issued at a premium to Upland’s current market price, provides additional capital to capture the set of M&A opportunities that should emerge due to the current macroeconomic environment. He also provides additional strategic and operational support as HGGC and Upland work together to build the company’s go-to-market capability to fully leverage the value of its enterprise customer base and strong product portfolio.
Led by Jack McDonald, President and CEO, Upland provides a library of products that offer “last mile” specific plug-in processes, reports and workflows. The company serves more than 1,800 corporate clients.
The financial terms of the newly issued convertible preferred shares are as follows, subject to the terms and conditions set forth in the definitive agreements:
- $115 million of convertible preferred stock, which is convertible into Upland Software common stock at a conversion price of $17.50 per share, representing a 30% premium to Upland’s closing price July 13, 2022;
- The preferred shares carry a dividend of 4.5%, which will be payable at the option of the company in cash or in kind;
- On an as-converted basis, the preferred stock currently represents approximately 17% of Upland’s common stock outstanding; and
- As part of HGGC’s investment, Upland plans to appoint HGGC’s David Chung as a new director to our Board of Directors.
Rod Favaron will step down as Chairman effective August 31, 2022. Additionally, Upland today reaffirmed its guidance for the second quarter ended June 30, 2022. Upland will release its full second quarter results on August 3, 2022.