Dicom Group Plc, the Berkshire, UK-based electronic document management products and services company, has announced the final stage of its plan to finance the acquisition of Irvine, California-based Kofax Image Products Inc by raising more than $35m by the issue of 7,500,000 new shares on the Frankfurt-based Neuer Markt. Dicom says that the strategy of the enlarged group is to be the first global electronic data management company in a fragmented market.
Because Kofax was too big to devour at one bite, Dicom announced in July a complicated deal whereby an equity vehicle set up by Dresdner Kleinwort Benson took over the company for $70.5m (CI No 3,713). Dicom took over 18.3% of the company at that time with an option to acquire the remaining shares over the following 18 months.
The Neuer Markt share issue will help Dicom acquire the remaining 81.7% though directors say they will only proceed with the offering, scheduled for the end of January, provided it raises $35m net of expenses.
According to figures released by Dicom, Kofax increased net income by 49.3% to $4.6m in the year to June 30 on sales up 14.1% at $38m. The main reason for the sales increase was increased demand for its Ascent software that provides document capture, data capture and internet-based distribution capture in one application.
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