Apttus, the leader in quote-to-cash (QTC) solutions, has announced it is acquiring Conga, the leader in Digital Document Transformation, in turn, creating a new leader in digital transformation for commercial operations. The deal is said to be valued at $715 million.
The combined company will become one of the most prominent in the Salesforce ecosystem, commanding over 10,000 enterprise and mid-market customers who bring in annual revenues of $400 million.
"Apttus and Conga are people-first businesses with core values that fit together seamlessly, and both are fueled by an inherent drive to succeed," said Frank Holland, previously the CEO of Apttus, who will now lead the go-forward company as CEO. "Combined, we'll continue to deliver the same dedication to customer service, innovation, and culture as we have in the past. Our mission remains resolute—to ensure customer success and unmatched world-class products and services. Now, we'll do it together."
The new company will operate under the Conga name.
Both Apptus and Conga go back to the Salesforce AppExchange, the company’s 14-year-old marketplace for apps that connect to and run on its platform. Both companies bootstrapped their business until they eventually attracted external investments. Conga launched its document generation app 15 years ago when the AppExchange was initially founded. Since then, it’s grown from 70 to more than 600 employees thanks to a $70 million funding round and a new suite of products.
While Apptus is regarded as a pioneer in the Configure, Price, Quote (CPQ) space. Apttus had a big focus to become the go-to Quote-to-Cash provider for companies that use Salesforce, though in 2015 this relationship took a turn. When Salesforce acquired rival company Steelbrick for $360 million it was rumored that Apptus had been the SaaS giant's first choice, though its $2 billion price tag was too steep. Since then, Apptus has dropped its focus on Salesforce.
Shortly before this deal was announced, founding CEO of Apptus, Kirk Krappe had left the company abruptly following allegations of "dysfunction and unprofessional conduct" under his leadership.
Deutsche Bank Securities Inc. served as the direct lending financing provider and exclusive M&A advisor and Kirkland & Ellis served as legal advisor for Apttus. Qatalyst Partners served as exclusive financial advisor and Willkie Farr & Gallagher as legal advisor to Conga.