WordPress management site WP Engine acquires Flywheel as it moves to a $1B valuation and IPO

TechCrunch | 6/24/2019 | Staff
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WordPress now accounts for 34 percent of all websites globally, and today one of the key companies that helps handle the creation and management of some of those WP-hosted sites is getting a little bigger through some consolidation in the wider ecosystem. WP Engine, which works with businesses to build and manage their WordPress-hosted sites, has aquired Flywheel, a smaller competitor.

Financial terms of the deal are not being disclosed, WP Engine’s CEO and chairperson Heather Brunner said in an interview, but she confirmed to TechCrunch that it involved her company raising a small round (amount also undisclosed) from its existing investors to help finance the deal. WP Engine’s investors include Silver Lake (which last year put a whopping $250 million into the company) along with WordPress developer Automattic, Silverton, GuidePost Growth Equity (formerly known as North Bridge) and Eric Ries (of “Lean Startup” fame).

Brunner - Valuation - WP - Engine - Recurring

Brunner also declined to talk valuation of WP Engine, although she noted that current annual recurring revenue is at $132 million, and that Flywheel’s is $18 million, and with a current growth rate of 50%, together the two are on track to make $200 million in ARR by 2020 and likely pass the $1 billion mark for valuation, en route to a public listing.

The deal is a sign of some consolidation in the ecosystem that has built up around WordPress. WP Engine is a veritable powerhouse in that ecosystem, having been an early mover in the space — WordPress backed it back in 2011 — and now working on building and managing sites for some 120,000 brands and agencies in 150 countries (likely totalling multiples of that in terms of actual sites).

WP - Engine - Brunner - Mid-market - Businesses

WP Engine, as Brunner describes it, focuses largely on mid-market and larger businesses, while Flywheel — founded and currently based out of Omaha — has...
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