Acquisitive data-capture software supplier Kofax plc has bought out 170 Systems Inc, a supplier of invoice processing software for $32.9 million, net of cash held by the company.
The news came as the company posted financial results for the year ending June 30 2009 that showed it had managed to increase turnover by 9% to £185.8 million, despite what it called ‘adverse economic conditions.’
During the fiscal year the document process automation systems supplier said it had upgraded much of its executive management team and senior sales leadership and added almost 1,700 new customers.
It also acquired OptiInvoice Digital Technology AB, a Scandinavian company that develops and markets electronic invoice and other document processing software.
Headquartered in Stockholm, OptiInvoice developed software that allows electronic invoices and other documents to be digitally encrypted for sending or receiving by e-mail in standard text, image or XML file formats.
Like OptiInvoice, the latest acquisition of 170 Systems adds to Kofax’s document handling capability with automated workflow software for invoice processing and related accounts payable (A/P) functions based on either SAP’s and Oracle’s enterprise resource planning suites.
“By acquiring 170 Systems Kofax has achieved the ability to deliver a complete invoice processing solution that incorporates paper as well as electronic invoice capture and A/P workflow capabilities,” the company said.
The takeover also adds cash flow optimisation software and a hosted software application that streamlines supplier payments.
170 Systems has its headquarters in Boston, Massachusetts and employs about 140 staff.
Kofax is part of what once was UK-listed Dicom Group Plc, which now trades under the Kofax name and the single product branding of Kofax Intelligent Capture & Exchange.
For its full-year, pre-tax profit decreased to £7.47 million from £7.63 million in the previous year period. For the year ended December 31, 2008, 170 Systems produced a net loss from operations of $2.6 million on revenue of $28.1 million. The company believes this latest acquisition will be neutral to earnings neutral for its current fiscal year.
