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Kofax Acquires Kapow For Its Big Data Integration Software

In a $47.5M all-cash transaction, Kofax has acquired all of Kapow’s stock

Irvine, CA-based Kofax plc (LSE: KFX) today announced that it has acquired Kapow Technologies, Inc., the leading provider of data integration software.

“As a successful market leader focused on providing smart process applications with the global presence and software assets needed to credibly execute that vision, Kofax is an ideal strategic fit for Kapow,” stated John Yapaola, CEO of Kapow. “With our strengths in big data integration, Kofax customers will achieve competitive advantage faster, and Kapow customers will have access to a broad array of complimentary software and solutions to better address their needs,” Yapaola added.

Hundreds of companies, including Astra Zeneca, Audi, Commerzbank, Deutsche Telekom, Fiserv, Thomson Reuters and Zurich Insurance Group use Kapow software on premise or via the cloud to become more integrated, automated and productive enterprises.

Kofax believes Kapow’s software will greatly simplify Kofax’s ability to integrate smart process applications with third party software for content import and export purposes as well as data validation during a business process.

In addition, Kofax believes it will significantly strengthen its ability to penetrate the emerging electronic content transformation segment of the multichannel capture market, and is highly complementary to the recent acquisition of Altosoft’s business intelligence and analytics products.

“By more quickly creating essential links between an organization’s smart process applications, systems of engagement and systems of record we can speed our time to market with new solutions and customers’ ROIs,” said Reynolds C. Bish, CEO of Kofax, adding:

“Kapow has successfully transitioned the majority of its software revenue from perpetual to term licenses while growing its total revenues during its last four fiscal years. We’ll be investing to grow its sales organization and further accelerate its software revenue growth while leveraging its software to accelerate growth in our smart process applications software and solutions business.”

CEO John Yapaola, Founder & CTO Stefan Andreasen (pictured below left), and all other Kapow employees will remain as employees of the company for the immediate future.



Kofax has acquired all of Kapow’s stock for total consideration of $47.5 million in cash, prior to deducting approximately $1.4 million of cash held by Kapow on closing of the transaction. Of this amount, $40.4 million was paid on closing.

An additional $2.4 million will be paid upon Kofax’s receipt of Kapow’s audited financial statements for its fiscal year ended June 30, 2013, $2.2 million will be paid one year from closing and $2.5 million will be paid two years from closing, with said amounts being subject to certain indemnification terms and conditions.

More Stories By Jeremy Geelan

Jeremy Geelan is Chairman & CEO of the 21st Century Internet Group, Inc. and an Executive Academy Member of the International Academy of Digital Arts & Sciences. Formerly he was President & COO at Cloud Expo, Inc. and Conference Chair of the worldwide Cloud Expo series. He appears regularly at conferences and trade shows, speaking to technology audiences across six continents. You can follow him on twitter: @jg21.

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