Thryv Holdings to Acquire Keap in $80 Million Deal

Thryv Holdings, Inc. (NASDAQ: THRY), a leading provider of software-as-a-service (SaaS) solutions for small and medium-sized businesses (SMBs), announced today that it has signed 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 over 100,000 SaaS subscriptions.

Joe Walsh, CEO of Thryv Holdings, described the acquisition as a transformative step for the company.

“The agreement to acquire Keap is a transformative moment for Thryv,” Walsh said. “This acquisition significantly enhances our SaaS business in recurring revenue and profitability profile by increasing our scale, subscriber count, all while strengthening our market presence in North America and beyond. Keap’s high-quality SMB sales and marketing automations will integrate seamlessly with Thryv’s platform offerings, creating powerful cross-sell and upsell opportunities while extending our go-to-market reach through strong channel partnerships.”

Strategic Implications of the Acquisition

The acquisition aligns 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.

Key highlights of the acquisition include:

• Market Leadership in SMB SaaS: The integration of Keap solidifies Thryv’s position as a market leader, offering comprehensive tools for CRM, marketing automation, and productivity.
• Expanded Reach: Keap’s partnerships and customer base will bolster Thryv’s direct and indirect go-to-market channels, increasing its footprint in North America while accelerating growth in Europe and Australia.
• Enhanced Software Roadmap: Keap’s AI-powered marketing automation tools will complement Thryv’s existing capabilities, driving cross-sell and upsell opportunities.
• Synergy and Profitability: With full integration planned, Thryv anticipates improved margins and multiple avenues for top-line growth.

Keap CEO Clate Mask expressed optimism about the deal’s impact on Keap’s customers and innovation potential.

“Thryv’s strong suite of solutions for SMBs aligns perfectly with our vision for helping businesses grow through automation and CRM tools,” Mask said. “The business combination allows us to deliver more value to our customers, accelerate innovation, and enhance our offerings through Thryv’s extensive resources and expertise.”

Financial Details and Timeline

The acquisition, valued at $80 million, will be paid in cash, subject to customary adjustments. Thryv plans to fund the transaction through equity financing and its existing credit facility.

Keap, which generated $85 million in revenue over the 12 months ending June 30, 2024, is expected to enhance Thryv’s profitability. The transaction is set to close in the fourth quarter of 2024, pending satisfaction of standard closing conditions.