Apttus Acquisition: Key Details, Impact, and What Comes Next

The acquisition of Apttus by Conga marks a significant milestone in the digital transformation industry. By merging their expertise, the combined entity aims to enhance commercial operations for over 10,000 customers. This strategic move is expected to streamline business processes and accelerate revenue generation, positioning the new Conga as a leader in the market.

What Is Apttus?

Founded in 2006, Apttus specializes in Revenue Lifecycle Management (RLM) solutions. Its core products include the Advantage Platform, Document Automation tools like Conga Composer and Conga Sign, and Contract Lifecycle Management (CLM) tools such as Conga CLM and CLM AI. Apttus differentiates itself with a complete enterprise-scale, open RLM platform that integrates seamlessly with existing technologies, leveraging AI for decision-making and automating tasks to enhance efficiency.

Who Acquired Apttus?

Conga is a prominent provider of Revenue Lifecycle Management (RLM) solutions, offering a comprehensive suite of tools to optimize and automate revenue processes. Key products include the Advantage Platform, which integrates Document Automation, Contract Lifecycle Management (CLM), and Configure-Price-Quote (CPQ) functionalities. Serving over 10,000 companies globally, Conga's platform is known for its ability to integrate seamlessly with any CRM, ERP, or cloud system, solidifying its influential market position.

When Was Apttus Acquired?

Conga acquired Apttus on May 7, 2020. This acquisition occurred during the COVID-19 pandemic, a period marked by an accelerated need for digital transformation as businesses adapted to remote work and minimized face-to-face interactions. The merger aimed to address these challenges by providing comprehensive solutions for automating core business processes and enhancing revenue generation, making it a timely and strategic move in the evolving digital landscape.

Why Was Apttus Acquired?

• Market Expansion: The merger of Apttus and Conga creates a new company with significant scale and a unique set of complementary product offerings. The combined entity aims to modernize revenue generation and manage key relationships for both small and large enterprises, thereby expanding its market reach. By combining Conga's volume business with Apttus's large enterprise deals, the new Conga can cater to a broader customer base, enhancing its market position.
• Technology Integration: The new Conga will offer a comprehensive product portfolio that includes CPQ, CLM, Document Generation, Process Automation, and eSignature solutions. This integration of technologies aims to provide a complete digital transformation solution for commercial operations. By merging Conga's expertise in digital document solutions with Apttus's capabilities in commercial operations, the unified platform will help businesses accelerate their end-to-end revenue lifecycle.
• Competitive Advantage: The merger positions Conga as a leader in digital transformation for commercial operations, with a unique product portfolio and significant market presence. The combined expertise and resources of Apttus and Conga will enable the new company to set the standard for commercial excellence and drive revenue generation more effectively. Leveraging Conga's ease-of-use and quick implementation with Apttus's complex, big-ticket solutions, the new Conga can target a broader range of customers from mid-market to large enterprises, enhancing its competitive edge.

Acquisition Terms

• Acquisition Price: $715 million
• Payment Method: The payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • The new company will operate under the Conga brand.
  • Frank Holland, previously the CEO of Apttus, will lead the new company as CEO.
  • Matthew J. Schiltz, former CEO of Conga, will join the company’s Board of Managers.
  • Nikitas Koutoupes, Managing Director at Insight Partners, the majority stakeholder in Conga, will also join the Board of Managers.
  • Thoma Bravo remains the lead strategic investor.
  • Insight Partners will retain a material ownership stake in the company and remain an active partner.
  • The transaction is subject to usual and customary closing conditions and regulatory approvals.

Impact on Apttus

The acquisition of Apttus by Conga has led to significant changes in operations and management. The new entity operates under the Conga brand, with Frank Holland, previously the CEO of Apttus, taking the helm as CEO. This merger also resulted in a leadership overhaul, with Matthew J. Schiltz, former CEO of Conga, joining the Board of Managers. The integration aims to streamline operations and enhance the combined company's ability to deliver comprehensive digital transformation solutions, leveraging the strengths of both Apttus and Conga.

Product offerings have been significantly enhanced, combining Apttus's middle office solutions with Conga's contract lifecycle management and digital document transformation capabilities. This merger aims to provide a robust suite of tools, including CPQ, CLM, Document Generation, Process Automation, and eSignature solutions. Employee reactions have been generally positive, with a focus on aligning core values and enhancing customer service. Customers are optimistic about the merger, anticipating improved workflows and more comprehensive solutions to support their digital transformation needs.

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