ACQUISITIONS
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Kofax acquires 170 Systems, continued ...
“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.”
To acquire 170 Systems, Kofax paid total consideration of $43.0 million
or net consideration of $32.9 million after deducting $10.1 million of
cash held by the company. Of the total consideration $29.7 million was
in cash, $9.0 million was in the form of a note payable due on
September 4, 2010, bearing interest at the rate of five percent per
annum and guaranteed by Kofax’s bank and $4.3 million in the form of a
hold back, with $2.3 million to be released on September 4, 2010 and
the remainder on September 4, 2011, subject to certain indemnification
terms and conditions.
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Kofax acquires 170 Systems, continued ...
“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.”
To acquire 170 Systems, Kofax paid total consideration of $43.0 million or net consideration of $32.9 million after deducting $10.1 million of cash held by the company. Of the total consideration $29.7 million was in cash, $9.0 million was in the form of a note payable due on September 4, 2010, bearing interest at the rate of five percent per annum and guaranteed by Kofax’s bank and $4.3 million in the form of a hold back, with $2.3 million to be released on September 4, 2010 and the remainder on September 4, 2011, subject to certain indemnification terms and conditions.
<< PREVIOUS 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