Release date: 5/20/2011
IRVINE, CA, MAY 20, 2011 – Kofax plc (LSE: KFX), the leading provider of document driven business process automation solutions, today announces it has entered into a definitive agreement to acquire Atalasoft, Inc., a leading developer and marketer of imaging software development toolkits (SDKs). The acquisition is expected to close by the end of May 2011 and will add to Kofax’s product portfolio with unique capabilities for portal and internet browser based applications, strengthen the Company’s competitive position and increase its addressable market.
”The widespread adoption of online applications provides another way for information to enter an enterprise,” said Reynolds C. Bish, Chief Executive Officer of Kofax. “Atalasoft’s technology for image enabling these applications therefore fits squarely within our target market and combining our offerings will allow us to better serve our customers’ needs. Excluding non cash charges, we expect this transaction to be earnings neutral this fiscal year but accretive in subsequent periods.”
Kofax plans to enhance Atalasoft’s SDK and offer it for use with its Capture and Transformation Modules software by the end of calendar year 2011. This solution will allow customers to capture enable portal and internet browser based applications and thereby extend their capture solutions beyond firewalls to include line of business applications accessible over the web. This will provide a common architecture for information capture across an enterprise and allow customers to further:
• Reduce operating costs,
• Accelerate processing times,
• Increase information quality,
• Improve customer service,
• Gain competitive advantage and
• Enhance regulatory compliance.
Using a mortgage application process as an example, most lenders allow prospective borrowers to apply for mortgages via traditional, paper based processes or online via portal and internet browser based applications. Applicants using the latter approach still have to provide paper copies of documents evidencing their proof of identity, income and other supporting information to the lender for processing. Capture enabling these web applications will allow applicants to easily scan those paper documents and submit all information electronically. This will in turn eliminate the need to submit paper copies, accelerate the mortgage application process, better serve customer needs and allow lenders to gain competitive advantage.
Atalasoft’s flagship product – DotImage – is the number one SDK for document scanning, viewing, annotating and processing in Microsoft .NET environments for traditional client server, portal and internet browser based applications. Its customers include over 2,500 end users who license the SDK for internal software development purposes, and system integrators and independent software vendors (ISVs) who use the SDK to develop proprietary applications that they then resell to end users. In both instances Atalasoft’s SDK significantly reduces a customer’s development effort and costs.
Commenting on the acquisition, Bill Bither, Founder and Chief Executive Officer of Atalasoft, said: “We’re excited to now be part of Kofax, a proven leader in the capture market and natural fit for Atalasoft. The expanded resources and market reach now available to us will help expand our product offerings and innovate at a more rapid rate. I’m very happy to continue as the General Manager of Kofax’s Atalasoft business unit and along with the entire Atalasoft team remain fully committed to our end user customers and developer community.”
Kofax will acquire all of Atalasoft’s stock for $5.5 million in cash, with $4.7 million to be paid on closing of the transaction and $.8 million to be paid one year from closing, subject to certain indemnification terms and conditions. Additional payments of up to $4.2 million in cash may be made during the next two and one half years subject to the achievement of specific annual revenue growth rates and earnings before interest, taxes and amortization (EBITA) margins, the delivery of defined new product capabilities and the attainment of certain other management objectives.
Atalasoft is a privately held company headquartered in Easthampton, MA with approximately 20 employees. Its audited financial statements for the year ended December 31, 2010 reported revenues of $3.6 million, an EBITA of $1.0 million and gross assets of $2.5 million. The acquisition does not include Atalasoft’s Vizit business, which the company recently spun off into a separate entity.
Kofax plc (LSE: KFX) is the leading provider of document driven business process automation solutions. For more than 20 years, Kofax has provided award winning solutions that streamline the flow of information throughout an organization by managing the capture, transformation and exchange of business critical information arising in paper, fax and electronic formats in a more accurate, timely and cost effective manner. These solutions provide a rapid return on investment to thousands of customers in financial services, government, business process outsourcing, healthcare, supply chain and other markets. Kofax delivers these solutions through its own sales and service organizations, and a global network of more than 700 authorized partners in more than 60 countries throughout the Americas, EMEA and Asia Pacific. For more information, visit www.kofax.com.
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