Thoma Bravo, Hyland to Acquire Kofax, ReadSoft, Perceptive Software

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Editor Coda
May 9, 2017

Thoma Bravo, a private equity firm, announced it has entered into a definitive agreement with Lexmark International Inc., a global imaging company, to acquire Lexmark’s Enterprise Software business, which is made up of three primary businesses: Kofax, ReadSoft and Perceptive Software.

The deal is subject to customary closing conditions and regulatory approvals, and is expected to occur in the third quarter of 2017.

Lexmark's owners, Apex Technology Co Ltd, PAG Asia Capital and Legend Capital Management Co, LTD, who acquired Lexmark in November of 2016, support the sale of the Enterprise Software business.

Upon closing of the transaction

  • The Perceptive Software business, including Perceptive Intelligent Capture, Acuo VNA, PACSGEAR and Enterprise Medical Image Viewing will be sold to Hyland Software, Inc., an existing Thoma Bravo portfolio company and provider of enterprise content management software led by President and CEO Bill Priemer.
  • The Kofax and ReadSoft businesses will create a single, newly independent Thoma Bravo portfolio company under the Kofax brand, and will be led by Reynolds C. Bish, current president of Lexmark Enterprise Software.

Seth Boro, a managing partner at Thoma Bravo says, “We’re incredibly excited to be acquiring the Lexmark Enterprise Software business as it contains some of the most advanced digital transformation technologies in the industry. The Perceptive Software business is highly complementary to Hyland, providing innovative technologies and vertical expertise. We’re equally thrilled to partner with Reynolds and his management team under the Kofax brand as a new Thoma Bravo portfolio company. Their vision to digitally transform and simplify initial customer interactions with businesses, or what they term the “First Mile”, represents an exciting opportunity across all industries.”

“We have long admired the people and technology of Perceptive Software and are thrilled to welcome them into the Hyland family,” said Priemer. “The combination of our content services portfolios will provide tremendous benefit to our current and future customers and partners.”

“Thoma Bravo has an incredible track record of success building and growing software companies,” said Bish. “Their unparalleled industry expertise and operational excellence make them the ideal partner for this new venture.”

This has been a busy space for acquisitions in the past few years:

  • In 2010 Lexmark acquired Perceptive Software in 2010 for approximately $280 million.
  • Lexmark acquired Readsoft in 2014 (after a bidding with Hyland) for approximately $251 million.
  • In May 2015, Lexmark acquired Kofax Limited for approximately $1 billion.
  • In November 2016 Lexmark was acquired by Apex Technology and PAG Asia Capital

Hyland Software Inc, a U.S. business software company owned by Thoma Bravo LLC has also been busy,

  • In May 2016 Hyland acquired Acrosoft enterprise content management
  • In 2014 they bid to acquire Readsoft, which ultimately was sold to Lexmark
  • In 2013 they acquired AnyDoc

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