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Having missed its targets in its last financial year (see Kofax’s full year falls short), and having got off to a bad start in Q1 (see Kofax warns), document imaging company, Kofax, has paid a princely sum to get its hands on Northern Ireland HQ’ed Singularity Limited. Singularity is a “leading provider of BPM software and case management solutions”, which turned over $16.1 million in its last financial year and achieved an adjusted EBITDA of $1.0 million. It has 215 employees.
Kofax has agreed a total consideration for Singularity of $48.1 million in cash, net of cash held by the company on closing of the deal. $30.3 million has been paid up-front, with the rest subject to certain conditions over the next couple of years. The attraction for Kofax is that Singularity expands its reach from capture into the ‘business process management' (BPM) space. According to Kofax, Singularity also brings with it the only “capture enabled BPM platform” in the market - which can be implemented on premise, via private clouds or under a public cloud SaaS subscription model.
In FY12, Singularity will add $8 million in revenue and be “slightly dilutive” on an adjusted EBITA basis. So, it looks like, despite laying off staff, Kofax may not be holding profits flat in FY12 after all. Kofax reassures, though, that Singularity will be accretive in subsequent periods. This is clearly a strategic play for Kofax. Looking at a 2010 report from non-profit industry organisation, AIIM, though 82% of respondents to their survey undertook co-ordinated scanning, only 16% captured data for use in a process. Kofax will be hoping it can persuade the other 84% to be more joined up!
