Captaris Completes Acquisition of Oce Document Technologies
January 07 2008 - 5:00AM
PR Newswire (US)
BELLEVUE, Wash., Jan. 7 /PRNewswire-FirstCall/ -- Captaris, Inc.
(NASDAQ:CAPA), a leading provider of software products that
automate document-centric processes, announced today that it has
completed the acquisition of Oce Document Technologies GmbH (ODT),
a provider of software and solutions for document capture, text
recognition and document classification. ODT has approximately 180
employees and maintains its global headquarters in Constance,
Germany, and its North American office in Bethesda, Maryland. ODT
had revenue of approximately EUR 22.7 million (USD $33.3 million)
in 2007. "This is a significant, transformative transaction for our
company," said David P. Anastasi, President and CEO of Captaris.
"Our acquisition of ODT significantly increases the scale of our
business, our international presence, and the depth of our
technology capabilities. It also positions us well to pursue growth
in the rapidly evolving distributed capture market. Leading
document capture providers have leveraged ODT technology for years
to create competitive advantage within their platforms. We intend
to continue emphasizing these OEM relationships and believe that
through leveraging the technology within Captaris platforms we can
reach a considerably broader audience in the fastest growing
segments of the capture market." "The revenue from the ODT business
will diversify our revenue sources," he added, "with approximately
35% of revenue following the acquisition expected to come from
non-fax product lines and approximately 40% expected to come from
international operations. We expect our shareholders to benefit
from Captaris' investment in the larger and higher growth document
capture market as well as from the growth opportunities in the
non-fax and international businesses. In addition to revenue growth
from the acquisition, we anticipate achieving organic growth in
2008 from multiple initiatives focused at automating
document-centric business processes through leveraging intelligence
from captured images. We expect these initiatives to create
substantial synergies with leading content management providers."
Under the terms of the acquisition agreement, Captaris acquired ODT
for approximately EUR 10.4 million in cash (USD $15.3 million), net
of ODT's cash balance as of the closing of approximately EUR 21.2
million (USD $31.1 million). Captaris also assumed ODT's operating
and financial liabilities, including approximately EUR 12.1 million
(USD $17.8 million) in future retirement and bonus obligations. The
purchase price is subject to adjustment following the closing based
on ODT's actual revenue for the year ended November 30, 2007.
Captaris expects the acquisition to be accretive to earnings in
2008 excluding non-cash charges related to purchase accounting. ODT
will be renamed and will operate under the name Captaris Document
Technologies GmbH. As previously announced David P. Anastasi,
President and CEO, and Peter Papano, CFO, will present at the
Needham & Company 10th Annual Growth Stock Conference in New
York City on Wednesday, January 9th at 2:30 p.m. Eastern Time. The
Company will host a live Web cast of the conference presentation
that can be accessed from the web address
http://www.wsw.com/webcast/needham21/capa/ or from the Investor
Relations section of the Captaris website at
http://www.captaris.com/. The Web cast will be archived on the
Company's website until Wednesday, January 16th, 2008. Updated
revenue and earnings guidance reflecting the acquisition will be
provided in the Captaris 2007 fourth quarter earnings conference
call, which will be held in February 2008. About Captaris, Inc.
Captaris, Inc. is a leading provider of software products that
automate document centric business processes. Captaris specializes
in document capture, recognition, routing, workflow, and delivery.
Captaris integrated solutions provide interoperability with the
leading line of business applications and technology platforms.
Captaris products RightFax, Captaris Workflow, Alchemy and FaxPress
are distributed through a global network of leading technology
partners. Captaris customers include the entire Fortune 100 and the
majority of the Global 2000 companies. Headquartered in Bellevue,
Washington, Captaris was founded in 1982 and is publicly traded on
NASDAQ Global Market under the symbol CAPA. For more information
visit http://www.captaris.com/. About Oce Document Technologies Oce
Document Technologies GmbH is a world leader and competence partner
for input management and the optimization of business processes.
The company is also a global provider of products in the related
core technologies such as scanning, character recognition and
document interpretation. ODT products include ODT products include
RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click Entry,
ID-Star, BUSY, Invoice CENTER, Tax CENTER, and Mail CENTER. The
following are registered trademarks and trademarks of Captaris:
Captaris, Alchemy, RightFax and Captaris Workflow. FaxPress is a
trademark of Castelle. RecoStar, DOKuStar, DOKuStar Capture Suite,
Single Click Entry, ID-Star, BUSY, Invoice CENTER, Tax CENTER and
Mail CENTER are trademarks of Oce Document Technologies GmbH. All
other brand names and trademarks are the property of their
respective owners. Certain statements in this press release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding our belief that we can reach a
broader audience in the fastest growing segments of the capture
market; our expectations related to the post-acquisition sources of
our revenue, the benefits of the transaction to our shareholders
and the creation of synergies with content management providers;
our anticipated organic growth in 2008; and our expectation that
the acquisition will be accretive to 2008 earnings per share.
Forward-looking statements include all passages containing verbs
such as "aims," "anticipates," "believes," "estimates," "expects,"
"intends," "plans," "predicts," "projects" or "targets" or nouns
corresponding to such verbs. Forward-looking statements also
include any other passages that are primarily relevant to expected
future events or that can only be evaluated by events that will
occur in the future. Forward-looking statements are based on the
opinions and estimates of the management at the time the statements
are made and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
anticipated in the forward-looking statements. Factors that could
affect Captaris' actual results include, among others, the
inability to successfully integrate ODT, its products and employees
into Captaris and achieve expected synergies, inability to retain
ODT employees, the potential failure to maintain and expand the
companies' network of dealers and resellers or to establish and
maintain strategic relationships, inability to develop new products
or product enhancements on a timely basis, inability to protect our
proprietary rights or to operate without infringing the patents and
proprietary rights of others, and quarterly and seasonal
fluctuations in operating results. More information about factors
that potentially could cause actual results to differ from the
forward looking statements is included in Captaris' quarterly
reports on Form 10-Q filed in 2007 and most recent annual report on
Form 10-K filed with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance upon these
forward-looking statements that speak only as to the date of this
release. Except as required by law, Captaris undertakes no
obligation to update any forward-looking or other statements in
this press release, whether as a result of new information, future
events or otherwise. DATASOURCE: Captaris, Inc. CONTACT: Erika
Simms, Treasury Analyst of Captaris, Inc., ; or Todd Kehrli or Jim
Byers, both of MKR Group, Inc., +1-323-468-2300, , for Captaris,
Inc. Web site: http://www.captaris.com/
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