TIDMKFX
Kofax Limited (NASDAQ: KFX) (LSE: KFX), a leading provider of
smart process applications for the business critical First MileT of
customer interactions, announced that on September 1, 2014 it
acquired Softpro GmbH, a leading provider of signature
verification, fraud prevention and electronic signature software
and services.
Many First Mile interactions require signatures, and Softpro's
software will help speed, simplify and instill confidence by
enabling organizations to offer a fully digital, streamlined and
secure experience. These electronic transaction management
capabilities transform and optimize the customer experience, while
reducing operating costs and driving increased competitiveness,
growth and profitability. This differentiates Kofax's smart process
applications from competitors who do not offer these value-added
capabilities, and adds another valuable reason for organizations to
choose the Company's solutions.
According to Geoffrey Moore, best-selling business author and
strategist, "E-signatures remove the last barrier between a hybrid
paper-to-digital workflow to an all-electronic process,
dramatically accelerating closure in any type of transaction that
requires a contract. E-signatures let users cruise through the
workflow without stopping."1
Forrester Research reports, "Electronic signatures are gaining
momentum due to rapidly evolving consumer technology and the need
to reduce transaction costs and the time to close business.
Electronic signing is becoming simpler, more accessible, and
cheaper with more tablets and touchscreen computers. The recent
connection of e-signature capabilities to improving customer
experience also accelerates adoption. As a result, enterprise
architects should include e-signature as part of an overall
enterprise content management (ECM) and business process management
(BPM) strategy, making it a foundational technology along with
records management, eDiscovery, and other content services used
across all lines of business."2
The most fraud-vulnerable financial instrument in use today is
the paper check. The 2013 American Bankers Association Deposit
Account Fraud Survey Report states that attempted fraud involving
deposit accounts reached $14.8 billion in 2012. FraudOne®,
Softpro's signature verification and fraud detection software,
protects bank and depositor assets by verifying signatures and
detecting fraud before funds can be accessed for more than 25
million checks every day.
SignDoc®, Softpro's electronic signature software, offers both
click-to-sign and physical signature capture via mobile and other
devices, signature verification and fraud detection, is available
for on premise or cloud deployments and currently processes over
200 million electronic signatures annually.
Reynolds C. Bish, Chief Executive Officer of Kofax, said:
"Softpro has established itself as a trusted solution provider with
many of the world's largest banks - including Citibank, JP Morgan
Chase, Wells Fargo and others - as well as leading financial
institutions, retailers and government agencies in more than 50
countries. Its software offers enhanced capabilities to Kofax
customers who want to embed it within their smart process
applications, thus making the First Mile of customer interactions
even smarter."
Kofax acquired all of Softpro's stock for total consideration of
$34.7 million in cash. Of this amount, $31.2 million was paid as
part of the closing of the transaction on September 1, 2014. An
additional $1.1 million will be paid 90 days after closing, $1.2
million will be paid one year from closing and $1.2 million will be
paid two years from closing, with said amounts being subject to
certain indemnification terms and conditions. The Company expects
to complete the integration of Softpro by the end of calendar year
2014.
Softpro was a privately held company headquartered in
Boeblingen, Germany with approximately 80 employees located
principally Western Europe and the U.S. Its audited financial
statements for the fiscal year ended December 31, 2013 reported
revenues of $13.3 million, of which 38% arose from software
licenses, 50% from maintenance services, 3% from professional
services and 9% from the resale of hardware devices for signature
capture purposes. The financial statements also reported an
Adjusted EBITDA(3) of $1.0 million and gross assets of $6.1
million. The principal shareholders, Heinz Reschke, founder and CEO
- age 66, and Peter Reschke, Head of Sales - age 66, and all other
Softpro employees will remain as employees for the immediate
future.
B. Riley & Co., LLC initiated and acted as Kofax's financial
advisor for this transaction.
About Kofax
Kofax is a leading provider of smart process applications for
the business critical First Mile of customer interactions. These
begin with an organization's systems of engagement, which generate
real time, information intensive communications from customers, and
provide an essential connection to their systems of record, which
are typically large scale, rigid enterprise applications and
repositories not easily adapted to more contemporary technology.
Success in the First Mile can dramatically improve an
organization's customer experience and greatly reduce operating
costs, thus driving increased competitiveness, growth and
profitability. Kofax software and solutions provide a rapid return
on investment to more than 20,000 customers in financial services,
insurance, government, healthcare, business process outsourcing and
other markets. Kofax delivers these through its own sales and
service organization, and a global network of more than 800
authorized partners in more than 75 countries throughout the
Americas, EMEA and Asia Pacific. For more information, visit
kofax.com.
Safe Harbor Statement
This document contains forward looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements are subject to risks and uncertainties that could
cause actual results to vary materially from those projected in the
forward looking statements. The Company may experience significant
fluctuations in future operating results due to a number of
economic, competitive, and other factors, including, among other
things, our reliance on third-party manufacturers and suppliers,
government agency budgetary and political constraints, new or
increased competition, changes in market demand, our ability to
consummate and the timing of the consummation of software revenue
transactions, our ability to integrate acquired companies and to
continue to grow through acquisitions or investments in other
companies or technologies and the performance or reliability of our
products. These factors and others could cause operating results to
vary significantly from those in prior periods, and those projected
in forward looking statements. Additional information with respect
to these and other factors, which could materially affect the
Company and its operations, are included in certain forms the
Company has filed with the Securities and Exchange Commission.
(1) Geoffrey Moore, Electronic Signatures: Removing the Last
Bottleneck to Productive Digital Transactions (April 2014), © 2014
Adobe Systems Incorporated.
(2) The Forrester WaveT: E-Signatures, Q2 2013, April 29, 2013,
Craig Le Clair, Forrester Research, Inc.
(3) For a definition of Adjusted EBITDA please refer to Kofax's
most recent Annual Report, which is available in the investor
relations section of the Company's website.
© 2014 Kofax Limited. Kofax and TotalAgility are registered
trademarks and First Mile is a trademark of Kofax Limited. All
other trademarks are the property of their respective owners.
Source: Kofax
Media Contacts:Kofax LimitedColleen EdwardsVice President,
Corporate
Communications+1-949-783-1582colleen.edwards@kofax.comorInvestor
Contacts:MKR Group Inc.Todd Kehrli,
+1-949-468-2300kfx@mkr-group.comorFTI ConsultingChris Lane, +44 (0)
20 3727 1000kofax@fticonsulting.com
This information is provided by Business Wire
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