KKR-Backed UK Startup Paddle Strikes $200 Million Deal (Correct)

UK startup Paddle is making its first acquisition, spending more than $200 million in a mix of cash and equity to buy ProfitWell to grow its payments service.

Founded in 2012 by then 18-year-old Christian Owens, Paddle raised $200 million from investors led by KKR & Co Inc at a $1.4 billion valuation earlier this month. Paddle focuses on building tools for software companies to handle payments including checkout and subscription management.

The deal has already closed, leaving the combined company with about 330 employees, Owens said in an interview. He added that he has known ProfitWell Chief Executive Officer ...