Dicom Group Plc, the UK-based electronic document management products and services company, is planning to merge with Irvine, California-based Kofax Image Products Inc in what it sasy is a bid to create a major international force in the imaging, workflow and document management market.
Nasdaq-quoted Kofax, formed in 1985, recorded revenue of $28.1m in the first nine months of its current year and supplies both application software and image processing products for the imaging workflow and document management market. It sells its products through distributors worldwide and Dicom has been a customer since 1992 and distributes its products in Europe and south-east Asia.
Because Kofax is too big to devour in one bite, Dicom has entered into a complicated deal whereby a specially created equity vehicle called Imaging Components Corporation Inc (ICC), backed by Dresdner Kleinwort Benson, will make a $12.75 a share offer for Kofax, valuing the company at $70.5m.
Dicom is to acquire 18.8% of ICC immediately and has an option to acquire the remainder of the shares over the next 18 months. In order to broaden its equity base, Dicom has already announced plans to list on Germany’s Neuer Markt and intends to use the opportunity to raise extra funds to purchase the remaining ICC shares.
