Nuance to Sell Document-Imaging Business to Kofax
Nuance Communications reported today that it’s signed a definitive agreement to sell its Document Imaging division to Kofax, Inc. for $400 million in cash.
According to Nuance, the sale will enable Nuance to focus its business entirely on its conversational AI- and cloud- based solutions, while simplifying the organization and improving its growth profile.
For Kofax, which provides enterprise software solutions, the Document Imaging division is said to bolster the company’s leadership in Intelligent Automation technologies. The deal, which is subject to customary closing conditions, is expected to close by the end of Nuance’s second fiscal quarter.
Kofax, which was previously a part of Lexmark International, was acquired by private-equity firm Thomas Bravo in July 2017 (see here for more).
“Nuance is entering the next phase of our organization’s growth and while selling the Document Imaging division was not an easy decision given its many years of contributions and dedication of our Imaging associates, it became clear in our portfolio reviews that this is the right outcome,” said Mark Benjamin, chief executive officer of Nuance. “Selling the Imaging division enables us to sharpen focus on our conversational AI- and cloud-related portfolio and accelerate the transformation well underway at the Company.”
Nuance Document Imaging is said to provide the software solutions and expertise required by professionals and organizations to more securely and efficiently optimize information-centric processes. The company’s portfolio enables strict compliance with information-security policies and regulations, while enabling organizations to streamline and eliminate gaps across the full spectrum of workflows spanning the lifecycle of their documents from origin to archiving. For users, Nuance’s Imaging solutions deliver an experience that is consistent, familiar and intuitive for more efficient, natural, and intelligent interactions with technologies used to create, capture, and process documents.
“Through the acquisition of Nuance’s Document Imaging division, Kofax will drive customer value by adding key technologies, including cloud compatibility, scan-to-archive, scan-to-workflow, print management and document security, to our end-to-end Intelligent Automation platform,” said Reynolds C. Bish, Chief Executive Officer of Kofax. “In addition, we will now be able to combine the best capture capabilities available in the market into one product portfolio.”
More details will be discussed during Nuance’s November 19, 2018 fourth-quarter earnings call. BofA Merrill Lynch served as Nuance’s financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Baker McKenzie served as Nuance’s legal advisors on the transaction.
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