It consists of the acquisitions Kofax, Readsoft and Perceptive Software. The buyer Thoma Bravo summarizes Kofax and ReadSoft under the Kofax brand in a new company.
Lexmark sells enterprise software division to investor
Products and technology from Perceptive Software will be added to Hyland software, which the investor has already long been part of.
The private equity company Thoma Bravo and Lexmark have agreed on the sale of the enterprise software division of Lexmark. This essentially consists of the companies Kofax, Readsoft and Perceptive Software purchased by Lexmark in the course of its reorientation. The investors Apex Technology, PAG Asia Capital and Legend Capital Management support the intended transaction.
They had taken Lexmark 2016 for about 3.6 billion dollars. This was equivalent to a 30 per cent increase in the share price compared to the day before the US company announced in October 2015 to “look for strategic alternatives”.With the sale, Lexmark completes the ambitious project of rebuilding itself as a software vendor and is again concentrating on sales, maintenance, and services for corporate pressure bombs. Software in the company, which is needed for the managed print services area, remains the main source of software.
The Lexmark Enterprise Software division is essentially composed of Kofax, Readsoft and Perceptive Software. The transaction is to be concluded in the third quarter of 2017 as long as the approvals of the competent authorities are available. The parties did not provide any information on the financial details.
Kofax and ReadSoft will appear on the market as a new, independent portfolio company of the company, Thoma Bravo, after the sale under the Kofax brand. The line is taken over by Reynolds C. Bish, who previously headed the Lexmark Enterprise Software division.
Kofax came to Lexmark for approximately one billion dollars in March 2015. Already in 2013, Lexmark had bought itself into the ECM segment for 72 million dollars with the takeover of the German supplier Saperion. In the year the manufacturer began an ambitious transformation under the motto “Less Paper Office”. The project must now be considered a failure in view of the takeover and sale of the software division.
Especially from the point of view of the German customers it is unfortunate that neither Lexmark nor the buyers have ever made a binding statement about the future of the Saperion customers. From the point of view of the Lexmark investors and the buyers of the enterprise software division, this is probably only a secondary aspect, but it is important for the customers here.
The Swedish company Readsoft had taken over Lexmark 2014. Its value was then estimated at around $ 254 million on the basis of the transaction. The aim was “to create a unique combination of technology and expertise for a complete automation of the financial processes of companies. Interesting detail is that Lexmark was able to secure Readsoft only after a bidding contest with Hyland software. The company is also controlled by the investor Thoma Bravo and is now getting the components of Perceptive Software released from Lexmark.