Transaction Supports Kofax’s Strategy in the Smart Process Applications Market
Kofax® plc (LSE: KFX), a leading provider of smart process applications for the business critical First Mile™ of customer interactions, today reported it has acquired Altosoft, Inc., a leading developer of business intelligence and analytics software. Altosoft will function as a wholly owned subsidiary of Kofax, conducting its business as usual while also enhancing Kofax’s product portfolio with near real-time process and data analytics, visualization and ETL capabilities. With this acquisition, Kofax now has all of the core capabilities necessary to provide market leading smart process applications.
“This acquisition is consistent with our stated acquisition strategy and in an adjacent area of interest that we’ve been talking about for some time now. It fundamentally allows us to provide more actionable information to our customers sooner than would otherwise be possible,” said Reynolds C. Bish, chief executive officer of Kofax. “Altosoft is a great fit with Kofax as the leadership team has prior experience in the BPM market, and the technology is an ideal complement to our existing product offerings. We’re pleased to welcome Altosoft to the Kofax family.”
Altosoft’s software provides rapid, no-coding development of near real time reporting and dashboard applications through the use of a data integration and analytics engine utilizing in-memory techniques. The software is available for both traditional on-premise deployments and as a hosted SaaS subscription offering featuring multi-tenant capabilities. It is developed using Microsoft’s .net environment and therefore consistent with and easily integrated into Kofax’s software products. Altosoft has a significant presence in the healthcare industry, and was noted in Gartner’s 2012 Magic Quadrant for Business Intelligence Platforms as therefore appropriate for related business use cases.
According to the Forrester Research Report, The Forrester Wave™: Business Intelligence Service Providers, Q4 2012, “Business intelligence now has a much more important role. All products and services continue to become more commoditized in our global economy. … But if there are two businesses that are marketing and selling identical products or services and one has more insight into its customers' behavior — or even if two share the same insights but one gets that information a day sooner — that business has a much higher chance of success.”
“We look forward to new growth opportunities within Kofax’s larger direct and indirect sales channels, and being able to enhance Kofax's smart process application solutions,” stated Scott Opitz, president and chief executive officer of Altosoft. “Our strength in business intelligence is a great fit with Kofax's leadership in smart capture, BPM, dynamic case management and mobile applications.”
Kofax acquired all of Altosoft's stock for $13.5 million in cash. Additional payments may be made subject to the achievement of specific annual revenue growth rates and EBITDA levels during calendar years 2013, 2014 and 2015 and certain management employment conditions.
Altosoft was a privately held company headquartered in Media, Pennsylvania with approximately 43 employees and contractors principally in the U.S. and Russia. Its unaudited financial statements for calendar year 2012 reported revenues of $3.4 million, an EBITA of $0.5 million and gross assets of $1.4 million with no material debt at closing. Kofax expects it to be EBITDA neutral during calendar year 2013 and accretive in subsequent periods. Scott Opitz, age 53, and Alex Elkin, chief technical officer and age 47, of Altosoft were its most important employees and majority shareholders, and will remain as employees.