Thryv Holdings, Inc. (NASDAQ: THRY), a leading provider of software-as-a-service (SaaS) solutions for small and medium-sized businesses (SMBs), today announced that it has entered into a definitive agreement to acquire Infusion Software. , Inc. known as Keap. The $80 million acquisition aims to strengthen Thryv’s market position in customer relationship management (CRM) and marketing automation, creating a combined base of more than 100,000 SaaS subscribers.
Joe Walsh, CEO of Thryv Holdings, described the acquisition as a transformational step for the company.
“The agreement to acquire Keap is a transformational moment for Thryv,” said Walsh. “This acquisition significantly enhances our SaaS business in our recurring revenue and profitability profile by increasing our scale, subscriber base, while strengthening our market presence in North America and beyond. Keap’s high-quality SMB sales and marketing automations will seamlessly integrate with Thryv’s platform offerings, creating strong sales and cross-selling capabilities and expanding our market reach through strong channel partnerships.
Strategic Implications of the Acquisition
The acquisition is in line with Thryv’s strategy to enhance its SaaS offerings and expand its market presence. Keap, which primarily serves SMBs in North America, Europe and Australia, will add significant value to Thryv’s portfolio with its subscription-based revenue model and established partner channels.
Highlights of the purchase include:
- Market Leadership in SMB SaaS: Keap’s integration solidifies Thryv’s position as a market leader, offering comprehensive tools for CRM, marketing automation and productivity.
- Extended Access: Keap’s partnerships and customer base will strengthen Thryv’s direct and indirect go-to-market channels, expand its footprint in North America and accelerate growth in Europe and Australia.
- Enhanced Software Roadmap: Keap’s AI-powered marketing automation tools will complement Thryv’s existing capabilities, increasing cross-selling and up-selling opportunities.
- Synergy and profitability: With full integration planned, Thryv expects improved margins and plenty of opportunities for top-line growth.
Keap CEO Clayt Musk expressed optimism about the deal’s impact on Keap’s customers and innovation potential.
“Thryv’s suite of powerful solutions for SMBs aligns perfectly with our vision to help businesses grow through automation and CRM tools,” said Musk. “The business combination allows us to leverage Thryv’s extensive resources and expertise to deliver greater value to our customers, accelerate innovation and enhance our offerings.”
Financial details and schedule
The $80 million acquisition will be settled in cash, subject to customary adjustments. Thryv plans to finance the transaction through an equity financing and existing credit facility.
Keap, which generated $85 million in revenue for the 12 months ending June 30, 2024, is expected to boost Thryv’s profitability. The transaction is scheduled to close in the fourth quarter of 2024, pending the satisfaction of standard closing conditions.