Lexmark Increases Offer for ReadSoft After Hyland Makes Bid
Lexmark International today announced that it’ll increase its offer price for all outstanding shares of Sweden-based ReadSoft. The revised cash offer is SEK 43.00, a 7.4 percent increase from Lexmark’s original offer of SEK 40.05, for each Class A and Class B share of ReadSoft for a price of approximately $194 million.
Lexmark says it made the decision to increase its offer price in response to a competitive offer for ReadSoft shares announced earlier today. Pursuant to the Transaction Agreement, ReadSoft’s Board of Directors has agreed to continue to recommend in favor of Lexmark’s revised offer. ReadSoft’s two largest shareholders also continue to support Lexmark’s revised tender offer.
The competing bid reportedly came from Hyland Software, which offered 1.3 billion Swedish krona, or about $196 million, for ReadSoft. Reuters reports that the Hyland bid, which amounts to 42.86 krona per share in ReadSoft, is about 7 percent higher than Lexmark’s first bid.
Lexmark says it’ll extend the offer period for ReadSoft shareholders to sell their shares to on or about July 14, 2014. It expects settlement of the offer to occur shortly after the end of the offer period.
ReadSoft is a global provider of software solutions that automate business processes, both on premise and in the cloud. Its software captures, classifies, sorts, and routes both scanned hard copy and digital business documents, provides approval workflows, and automatically extracts and verifies relevant data before depositing it into a customer’s systems of record. It’s recognized in the industry for its strong integration with leading ERP (Enterprise Resource Planning) systems such as SAP and Oracle, for applications that include invoice processing, accounts-payable automation and sales-order processing. Its software also automates business processes for claims, applications, and questionnaire-processing across a number of industry segments.
Lexmark CEO and Chairman Paul Rooke commented, “The increase in our tender offer price reflects Lexmark’s confidence in the combination of ReadSoft and Perceptive Software to support our strategy of building our high value solutions that help our customers manage their unstructured information challenges. We believe that Lexmark is a perfect strategic fit for ReadSoft with the financial resources and global reach to enable ReadSoft to reach its full potential.
“We firmly believe that Lexmark’s revised cash tender offer price is the superior offer and represents the best value to ReadSoft shareholders. Further, we have completed our due diligence, which has confirmed ReadSoft’s strategic fit within Lexmark; we have received necessary regulatory approvals and we are prepared to deliver cash for all of the tendered shares as early as mid-July, two months earlier than the competitive offer.”