ACQUISITIONS
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Irvine’s Kofax acquires 170 Systems
Strategy is to position the company to lead in the surging invoice processing market.
By Susan BelknappPublished: September 08, 2009 02:40 PM
Irvine-based Kofax, the leading provider of document- driven process automation solutions announced Tuesday that it has acquired Bedford, Mass.-based 170 Systems Inc., a leading provider of financial process automation software.
The deal was for consideration of $32.9 million; net of cash held by the company. (For a detailed breakdown of the financial arrangements, see next page.) Consistent with Kofax’s stated acquisition strategy, management and the board of directors expect it the transaction position the company for leadership in the rapidly growing invoice processing market.
170 Systems is privately held, venture capital funded company headquartered near Boston with approximately 140 employees. The company's flagship product, the 170 MarkView Financial Suite, is a workflow solution for invoice processing and related accounts payable functions
“This acquisition is in line with our strategy of augmenting our organic growth with the acquisition of synergistic technologies or complementary companies that increase our competitive advantage or expand our market reach,” says Reynolds C. Bish, CEO of Kofax, “In this specific case it addresses a significant competitive disadvantage we’ve publicly acknowledged and discussed in some detail over the past year, and should therefore allow us to better pursue our revenue growth strategies.”
The acquisition will allow Kofax to deliver a complete invoice processing solution that incorporates paper as well as electronic invoice capture and accounts payable workflow capabilities.
“Our continuing profitability and strong balance sheet allowed us to effect this transaction from a position of strength,” says Bish. “As a result, we’re able to maintain a comfortable cash position and our $16 million working capital line of credit remains available through September of 2011. Furthermore, excluding non cash charges, we expect this acquisition to be earnings neutral this financial year and accretive in subsequent periods.”
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Irvine-based Kofax, the leading provider of document- driven process automation solutions announced Tuesday that it has acquired Bedford, Mass.-based 170 Systems Inc., a leading provider of financial process automation software. The deal was for consideration of $32.9 million; net of cash held by the company. (For a detailed breakdown of the financial arrangements, see next page.) Consistent with Kofax’s stated acquisition strategy, management and the board of directors expect it the transaction position the company for leadership in the rapidly growing invoice processing market. 170 Systems is privately held, venture capital funded company headquartered near Boston with approximately 140 employees. The company's flagship product, the 170 MarkView Financial Suite, is a workflow solution for invoice processing and related accounts payable functions “This acquisition is in line with our strategy of augmenting our organic growth with the acquisition of synergistic technologies or complementary companies that increase our competitive advantage or expand our market reach,” says Reynolds C. Bish, CEO of Kofax, “In this specific case it addresses a significant competitive disadvantage we’ve publicly acknowledged and discussed in some detail over the past year, and should therefore allow us to better pursue our revenue growth strategies.” The acquisition will allow Kofax to deliver a complete invoice processing solution that incorporates paper as well as electronic invoice capture and accounts payable workflow capabilities. “Our continuing profitability and strong balance sheet allowed us to effect this transaction from a position of strength,” says Bish. “As a result, we’re able to maintain a comfortable cash position and our $16 million working capital line of credit remains available through September of 2011. Furthermore, excluding non cash charges, we expect this acquisition to be earnings neutral this financial year and accretive in subsequent periods.” NEXT PAGE >> Related headlines 'OC METRO Minute,' Sept. 3: Visiogen to be acquired by Abbot for $400 million Rebranding turns Marshal8e6 to M86 Security Fountain Valley-based D-Link ramps up its Web offerings UC Irvine debuts Center for Computer Games & Virtual Worlds Santa Ana's shopgoodwill.com celebrates 10 years |
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