Lexmark to Acquire Kofax for $1 Billion – Will Create ‘Broadest’ Portfolio of Document- and Data-Capture Solutions
March 25, 2015 – Lexmark International reports that it will be acquiring Kofax Limited for some $1 billion, acquiring all Kofax outstanding shares for $11.00 per share in cash. Lexmark will fund the acquisition with its non-U.S. cash and its existing credit.
Kofax’s board of directors unanimously recommended in favor of the merger agreement. Kofax shareholders, holding approximately 25 percent of the outstanding shares of Kofax, have signed an agreement committing to the merger.
Lexmark says the Kofax acquisition will nearly double the size of its enterprise-software business to an approximately $700 million business competing in the expanding $10 billion content- and process-management software market. According to Lexmark, this market is expected to have a compounded annual growth rate of approximately 10 percent. Lexmark expects the Kofax acquisition will significantly increase the growth and operating margins of Lexmark’s software business. It says Kofax’s smart document-processing applications, along with Lexmark’s Perceptive Intelligent Capture, will create the broadest and deepest portfolio of document-capture solutions in the market, ranging from Web portals and mobile devices, to smart MFPs.
Founded in 1985 and headquartered in Irvine, California, Kofax reported revenue of $297 million for 2014. It has over 20,000 customers worldwide, including 80 customers on the Fortune Global 100 list. The company operates in all regions of the world, and has more than 850 global channel partners.
Kofax’s products include Kofax Capture for capturing information from all types of paper and electronic documents, including faxes, email messages, and attachments, text messages, and EDI or XML data streams, and from scanners, MFPs, Web portals, and mobile devices. It sells its products to imaging vendors such as Konica Minolta, Xerox, Ricoh, and Canon.
Lexmark says the Kofax acquisition is part of its capital-allocation strategy, which acquire companies that strengthen and support the growth of Lexmark’s solutions capabilities, while returning capital to shareholders. Other Lexmark software-company acquisitions over the last several years include Calaron Technology, ReadSoftware, Saperion, Acuo-Clincial, and Brainware. The firm expects to complete the Kofax acquisition in the second quarter of 2015. The acquisition is contingent on Kofax shareholder approval, regulatory clearances, and other customary closing conditions.
Lexmark Chairman and CEO Paul Rooke commented, “The acquisition of Kofax enhances our best-in-class offerings so our customers can capture, manage, access, and act upon their information more efficiently, and extends Lexmark into the high-growth smart process applications market. Our customers will have a breadth of hardware and software solutions that connect their information silos and automate their business processes – enabling them to access the most relevant information at the moment they need it to drive business forward.”
- January 2015: LEXMARK REPORTS LOSS FOR FOURTH QUARTER, BUT SEVENTH CONSECUTIVE QUARTER OF REVENUE GROWTH
- January 2015: LEXMARK ACQUIRES CLARON, PROVIDER OF MEDICAL-IMAGING AND DISTRIBUTION SOFTWARE
- January 2015: XEROX TO MARKET KOFAX’S TOTAL AGILITY PLATFORM TO ENHANCE ITS MPS AND DOCUMENT-MANAGEMENT SERVICES
- December 2014: PRINT AUDIT’S EMBEDDED PRINT-MANAGEMENT SOLUTION NOW COMPATIBLE WITH LEXMARK MFPS
- November 2014: LEXMARK ENHANCES ‘SMART MFP ECOSYSTEM’ WITH SERVER-LESS ROUTING AND SECURE PRINTING, AIRPRINT CERTIFICATION
- November 2014: READSOFT IS NOW OFFICIALLY PART OF LEXMARK INTERNATIONAL, MERGED INTO PERCEPTIVE SOFTWARE
- October 2014: NEW SERVER-LESS LEXMARK ACCUREAD PROVIDES AUTOMATIC ROUTING, DATA EXTRACTION, NOTIFICATIONS FOR SCANNED DOCUMENTS
- October 2014: STRONG QUARTER FOR LEXMARK; MPS AND PERCEPTIVE SOFTWARE REVENUE FORECAST TO REACH $1 BILLION
- June 2013: RICOH EUROPE JOINS KOFAX GLOBAL PARTNER PROGRAM