Category Archives: News

Konica Minolta Acquires Techline Communications

Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta) today announced the acquisition of TechLine Communications, Inc., a Seattle, Washington-based systems integrator that specializes in the design and implementation of Process Automation, Content Integration and Business Information Delivery Systems.

TechLine works closely with its clients to automate and streamline key business processes. The company provides professional services for consulting, implementation, custom development, training and support. It has successfully implemented hundreds of solutions since 1993, and has years of continuous relationships supporting its customers. TechLine is also a reseller of an ECM product line that includes the offerings of partners like OnBase, OpenText, Dialogic, and AVST.

“This acquisition expands our reach into the Pacific Northwest through a well-established group that does a considerable amount of work with both the public and private sectors,” said Kevin Kern, Senior Vice President, Business Intelligence Services and Product Planning, Konica Minolta. We couldn’t be more thrilled by the addition of this new group.

John Fisk, President of TechLine, added, “This deal solidifies our longstanding commitment to provide our customers with a broader set of resources and software solutions to better meet their continuing needs.”

Konica Minolta’s ECM solutions and services capabilities leverage the speed and power of technology to make organizations run more efficiently, while helping them transition into the workplace of the future.

GI Partners acquires Doxim from Strattam

Doxim Inc. (“Doxim”) today announced that GI Partners (“GI”) has acquired a majority stake in the company from Strattam Capital (“Strattam”). Doxim’s existing management team will maintain a significant ownership in the company.

Founded in 2000, Doxim helps over 1,700 clients in the financial services industry digitize the consumer experience to create better connections at every touch-point and dramatically improve service at a fraction of current operating costs. Doxim’s offering includes its enterprise content management platform and statements solutions, which comprise digital composition, delivery, and archiving, as well as print services. The Doxim Customer Engagement Platform enables omni-channel customer experience that improves long-term loyalty and drives wallet share.

Chris Rasmussen, CEO of Doxim, said “We are excited to welcome GI as a partner for this new chapter and thank the Strattam team for helping us build the foundation for our next phase of growth. We have become the technology provider of choice for financial institutions across North America with relentless passion for delivering quality, innovation, and superior customer service. GI’s experienced team and commitment to the growth of our business strengthen the promise we have made and direction we have outlined to our valued clients, partners, and employees.”

“It has been wonderful to see Doxim’s progress since our initial investment,” said Bob Morse, Managing Partner and co-Founder of Strattam. “When we first met Chris, we were impressed by his goals for the company, and we knew that we had the people and tools to make those goals reality. We agreed to a 5-Point Plan before we signed the deal to make a meaningful difference in the company’s growth curve by augmenting its process, team and market reach. What the company has achieved is outstanding, even by the ambitious goals we had at the outset. Chris and the team have done a fantastic job in positioning the company for future growth.”

Travis Pearson, Managing Director at GI Partners said, “Doxim’s leadership in customer engagement solutions, its sizable market opportunity, and the company’s intense focus on its clients’ success all combine to create a unique opportunity. We are excited and proud to partner with Chris and the Doxim leadership team to help them continue their emphasis on innovation and growth.”

Headquartered in Markham, Ontario, Doxim has offices throughout the United States and Canada.


M-Files Delivers 37 Percent Revenue Growth in 2017 and Exceeds 750 Percent Over the Last Six Years

M-Files 2018 and the Intelligent Metadata Layer fuel strong global performance with a new system-neutral approach for accessing and managing information across the enterprise without migration

M-Files Corporation today announced 2017 growth metrics and corporate achievements, reaffirming its position as the most innovative and fastest-growing provider in the enterprise content management (ECM) and content services platforms (CSP) space.

M-Files grew revenue by more than 37 percent in 2017 over 2016, including strong growth in both direct sales and through its global partner network, now numbering more than 600 partners worldwide. The Company also achieved a 121 percent increase in cloud revenue in 2017. Continued strong growth in the Company’s SaaS (Software-as-a-Service) business, along with accelerating market acceptance of its unique intelligent information management platform, has fueled sustained revenue growth of more than 750 percent over the last six years.

M-Files also opened offices in France, Australia and Canada in 2017, with the French office resulting from the acquisition of Steamdesign, a local French M-Files partner. In addition, M-Files has been aggressively hiring with an increase in staff of over 12 percent in 2017.

M-Files focused on expanding artificial intelligence (AI) capabilities in 2017, partnering with ABBYY, a global provider of innovative language-based and artificial intelligence technologies. Then in August, M-Files acquired Apprento, a Canada-based provider of AI technology solutions that brought new natural language processing (NLP) and natural language understanding (NLU) technologies to the M-Files platform. In December, M-Files launched M-Files 2018, a major new product release that represents a fundamental step forward in how businesses manage information. M-Files 2018 and the new Intelligent Metadata Layer (IML) provide a unified and simple interface that leverages AI to enable users to quickly access and use documents and other information regardless of the system in which they are stored. The resulting approach allows businesses to innovate and improve how they manage information in a flexible and phased manner without disturbing existing systems and processes and without complex migration projects.

“Our incredible track record of rapid growth is a direct result of our commitment to customer success and aggressive investment in our unique approach and innovative technologies that change how companies manage the overwhelming amount of information they confront daily,” said Miika Mäkitalo, CEO at M-Files Corporation. “We’re performing exceptionally well in all key areas of the business, far outpacing the market and any individual competitor. M-Files 2018 and the new Intelligent Metadata Layer are not only changing our business, they have changed the definition of the market by the analysts who now describe a new, more dynamic and flexible approach that is system-neutral and intelligent. This is our vision; it’s shaping the market in profound ways, and if the uptake on M-Files 2018 in December is any indication, 2018 will be another year of record-breaking growth.”


Nintex Announces Agreement with Thoma Bravo as New Lead Investor

New investment from Thoma Bravo will facilitate the company’s continued growth and market leadership in delivering intelligent process automation technology to thousands of enterprises worldwide

Nintex today announced that it has entered into an agreement with Thoma Bravo, LLC in which the leading private equity investment firm will now own a majority stake in the company.  Founded in Melbourne, Australia in 2006, Nintex leveraged its early success with a major global expansion and move to the cloud in 2013.  Since then, Nintex has established itself as the leading innovator in intelligent process automation, helping nearly 8,000 enterprises in 90 countries automate millions of critical business processes.

“For several years, we’ve watched Nintex pioneer the workflow and content automation category by delivering best-in-class technology and evolving to the cloud, all while producing impressive growth and financial results,” said Thoma Bravo Partner Hudson Smith. “We firmly believe that process automation is highly achievable for many more thousands of enterprises through the Nintex Workflow Cloud.  Our goal is to help Nintex achieve its strategic objectives and vision through leveraging the experience and resources of Thoma Bravo.  We’re excited to become the company’s lead investor in its next phase of growth.”

Harry Taylor, Managing Director of investor TA Associates noted, “It’s been an amazing transformation for Nintex over the last four years; we’re very pleased to have been a key partner to management in creating a new market category and assuming the leadership position. We welcome this new partnership with Thoma Bravo and will retain an ownership position.”

The transaction is expected to be completed by the end of March 2018 subject to customary closing conditions.

“Nintex will continue to drive its aggressive strategy to the benefit of its customers and partners and will extend its market leadership for the long term,” said Nintex Chairman and CEO John Burton, who upon closing of the transaction will transition the CEO role to Eric Johnson, who has served as Nintex CFO for the last four years. “I can think of no one better equipped to lead Nintex in its next phase than Eric.  I look forward to assisting him to continue his career success in his new role.”

Eric Johnson is a proven SaaS executive with more than two decades of financial and operational experience at mid- and large-sized software companies.  At Nintex, he has been key in driving the company’s move to the cloud and subscription pricing.  Prior to Nintex, he served as VP of Finance for Jive Software, where he helped lead the company through its IPO process.  Prior thereto, he served as VP of Worldwide Sales Operations at Serena Software. “Thoma Bravo has a proven track record of helping software companies achieve exceptional results, and we’re pleased to be part of its portfolio going forward,” said Johnson. “With a new lead investor, we can continue our rapid and profitable growth and continue to deliver industry-leading intelligent process automation capabilities to our worldwide customers and partners.”

Keith Fujinaga, who joined Nintex in January 2017 as VP of Finance, will assume the CFO role.  Before Nintex, Fujinaga served as the CFO at ipCreate and VP of Finance at Global Market Insight, Inc.  He also has held Director of Finance roles at Microsoft and Penfords.

A History of Success and Innovation

Nintex has unwaveringly committed to innovation and growth since its inception more than a decade ago.  The company has a rich history of automating processes for SharePoint and Office 365, the latter of which recently surpassed 50 million workflow executions.

Additionally, the company introduced Nintex for Box and Nintex for Salesforce in 2017 and has continued building upon deep partnerships with industry leaders like DocuSign and ServiceMax.  With a strong ecosystem of partners, Nintex is uniquely positioned to help business professionals manage their business processes from within the enterprise software tools they know and use, such as CRM, Cloud Content Management, E-Signature, and Field Service Management providers.

Today, thousands of enterprises worldwide across industries, such as banking, insurance, pharmaceuticals, government, manufacturing and healthcare, turn to the Nintex platform every day to automate, orchestrate and optimize a wide-range of business processes.

Leading industry analyst firms regularly cite the company’s innovation in digital process automation (DPA) as well as its position as a leading digital business platform (DBP) and a leader in workflow and content automation (WCA) and advanced digital transaction management (DTM).


Thomas H. Lee Partners To Acquire Alfresco Software

Thomas H. Lee Partners, L.P. (“THL”) announced today that it has signed a definitive agreement under which funds affiliated with THL will acquire Alfresco Software, Inc. (the “Company” or “Alfresco”), a leading enterprise open-source provider of process automation, content management, and information governance software.

Founded in 2005 and headquartered in San Mateo, California and Maidenhead, United Kingdom, Alfresco is an enterprise open-source software company focused on making business flow quickly, seamlessly, and intelligently, by driving the convergence of enterprise content management and business process management. Alfresco provides enterprise content management solutions that enable clients to retain, manage, and share documents, files, and processes across cloud, mobile, hybrid, and on-premise environments. The Company’s innovative software powers the work of over 11 million people at industry-leading organizations in 195 countries worldwide.

“We are thrilled about the opportunity to partner with THL – a firm with an impressive track record of growing successful technology and information services businesses,” said Doug Dennerline, Alfresco’s Chief Executive Officer. “With THL’s deep industry experience, operational expertise, and strategic guidance, we will be well positioned to expand our platform, build on our space in the enterprise content management and business process automation markets, and continue providing customers with the best-in-class service they have come to know and expect.”

“We are very excited about this new partnership with Alfresco,” said Laura Grattan, Managing Director at THL. “Alfresco is an innovative leader in content management and process automation solutions, operating in a large, underserved market. Their modern, cloud-native platform is the preferred technology for companies that are carrying out successful digital transformations, making this a highly attractive investment opportunity for THL. Alfresco has an outstanding reputation for enabling customers to collaborate more effectively, optimize business processes, and strengthen compliance, and we look forward to working closely with their talented team to help the Company execute its go-forward strategy and accelerate growth.”

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2018. Terms of the transaction were not disclosed.

Canon Solutions America Announces 2018 Executive Appointments

Canon Solutions America, Inc., a wholly owned subsidiary of Canon U.S.A., Inc., today announced key senior executive appointments that will help continue to expand the company’s position as an innovative and forward-thinking industry leader. These internal moves represent Canon Solutions America’s commitment to elevating its own leaders and putting them in a position to succeed, both personally and professionally.

Executive promotions include:

  • Toyo Kuwamura has been promoted from president and CEO to chairman and CEO, of Canon Solutions America.
  • Peter Kowalczuk has been promoted from executive vice president and general manager to president of Canon Solutions America.
  • Francis McMahon has been promoted from vice president to executive vice president, Production Print Solutions, of Canon Solutions America.

“It is with great pride and a great deal of respect that I can share the well-deserved promotions of some of our leading Canon Solutions America team members,” said Toyo Kuwamura, chairman and CEO, Canon Solutions America. “These individuals are truly representative of the Canon culture, our company vision and shared values. Having shown a strong commitment to helping grow Canon Solutions America as an industry leader, I thank them for their continued service and dedication to push Canon Solutions America even further in 2018 and beyond.”

Lastly, Canon Solutions America once again thanks Malkon Baboyian, executive vice president, Production Print Solutions/Large Format Solutions and James Sharp, executive vice president, Professional Services, who both have retired after 30 years of service each with Canon.” Mal and James were both instrumental in positioning Canon Solutions America as the leader it is today. Both the company and the industry at large were impacted by their ability to blend immense knowledge and leadership abilities,” said Toyo Kuwamura.

OpenText Reports Second Quarter Fiscal Year 2018 Financial Results

Total Revenue of $734 Million, up 35% Y/Y; Operating Cash Flows of $167 Million, up 148% Q/Q, up 56% Y/Y

Open Text Corporation (NASDAQ: OTEX, TSX: OTEX),  today announced its financial results for the second quarter ended December 31, 2017.

“OpenText’s Fiscal Year 2018 Q2 results represent the power of the OpenText Business System: our strategic focus on M&A, functional integration, operational excellence and innovation.  The company delivered 35% year-over-year revenue growth, adjusted operating margin of 36.5%, and operating cash flows of $167 million,” said Mark Barrenechea, OpenText Vice Chairman, CEO & CTO.  “Our Annual Recurring Revenues (ARR) were strong at $516 million or 31% year-over-year growth; we also had solid organic growth within the quarter.”

“With ECD now on our adjusted operating model and the integration complete, our energy turns to our go-to-market initiatives for calendar year 2018.  These go-to-market initiatives include cross-selling, expanded partner footprint and new offerings.  We also see increasing demand in our Enterprise Information Management (EIM) product suite, including Security and AI products,” said Barrenechea.  “Mergers and Acquisitions continue to be our leading growth driver and by utilizing the OpenText Business System, we are well positioned for future M&A opportunities within the EIM market.”

Barrenechea further added, “We are introducing a 2021 adjusted operating margin target range of 36% to 40%, up from our previously stated 2020 target range of 34% to 38%.”

Financial Highlights for Q2 Fiscal 2018 with Year Over Year Comparisons

Summary of Quarterly Results                
(in millions except per share data) Q2 FY18 Q2 FY17 $ Change % Change
  Q2 FY18 in
% Change
in CC*
Cloud services and subscriptions $208.1   $175.1   $33.1   18.9 %   $207.2   18.3 %  
Customer support 308.1   219.7   88.4   40.3 %   301.2   37.1 %  
Total annual recurring revenues** $516.2   $394.7   $121.5   30.8 %   $508.4   28.8 %  
License 135.2   97.8   37.5   38.3 %   130.6   33.6 %  
Professional service and other 83.0   50.2   32.7   65.2 %   80.9   61.0 %  
Total revenues $734.4   $542.7   $191.7   35.3 %   $719.8   32.6 %  
GAAP-based operating income $166.6   $107.2   $59.5   55.5 %        
Non-GAAP-based operating income (1) $267.9   $184.5   $83.4   45.2 %   $262.0   42.0 %  
GAAP-based operating margin 22.7 % 19.7 % n/a   300   bps      
Non-GAAP-based operating margin (1) 36.5 % 34.0 % n/a   250   bps 36.4 % 240   bps
GAAP-based EPS, diluted (2) $0.32   $0.18   $0.14   77.8 %        
Non-GAAP-based EPS, diluted (1)(3) $0.76   $0.54   $0.22   40.7 %   $0.74   37.0 %  
GAAP-based net income attributable to OpenText (2) $85.1   $45.0   $40.1   89.0 %        
Adjusted EBITDA (1) $290.1   $199.8   $90.3   45.2 %        
Operating cash flows $166.6   $107.0   $59.6   55.7 %        


Summary of YTD Results                
(in millions except per share data) FY18 YTD FY17 YTD $ Change % Change


  FY18 YTD in
% Change
in CC*
Cloud services and subscriptions $402.0   $344.7   $57.2   16.6 %   $402.0   16.6 %  
Customer support 603.5   429.9   173.6   40.4 %   593.5   38.1 %  
Total annual recurring revenues** $1,005.4   $774.6   $230.8   29.8 %   $995.4   28.5 %  
License 213.5   158.4   55.1   34.8 %   207.8   31.2 %  
Professional service and other 156.2   101.3   54.8   54.1 %   152.5   50.5 %  
Total revenues $1,375.1   $1,034.4   $340.7   32.9 %   $1,355.7   31.1 %  
GAAP-based operating income $253.7   $181.2   $72.5   40.0 %        
Non-GAAP-based operating income (1) $469.0   $335.9   $133.1   39.6 %   $460.9   37.2 %  
GAAP-based operating margin 18.5 % 17.5 % n/a   100   bps      
Non-GAAP-based operating margin (1) 34.1 % 32.5 % n/a   160   bps 34.0 % 150   bps
GAAP-based EPS, diluted (2) $0.46   $3.89   ($3.43)   (88.2) %        
Non-GAAP-based EPS, diluted (1)(3) $1.30   $0.97   $0.33   34.0 %   $1.27   30.9 %  
GAAP-based net income attributable to OpenText (2) $121.7   $957.9   ($836.2)   (87.3) %        
Adjusted EBITDA (1) $510.1   $366.4   $143.6   39.2 %        
Operating cash flows $233.7   $180.5   $53.3   29.5 %        


“We delivered very strong margins in the quarter with a significant increase in operating cash flow,” said John Doolittle, OpenText CFO. “Our gross leverage ratio has significantly improved and it is now below 3.0 times.  With a strengthening balance sheet and growing adjusted EBITDA, OpenText is well positioned for future growth initiatives.”

Madhu Ranganathan to Join OpenText as CFO; John Doolittle to Complete Four Successful Years

OpenText also announced today that Madhu Ranganathan, CFO at [24] (, a leading company for AI and Customer Experience Software, will join OpenText as EVP and CFO, effective April 2, 2018.  John Doolittle will continue as CFO until April 2, 2018, and will remain with the Company until September 2018, ensuring a successful transition. 

“I am very pleased to welcome Madhu Ranganathan to OpenText, a Silicon Valley veteran and a highly experienced global finance executive. Madhu brings over 25 years of strategic and financial leadership experience with deep operational focus in software, hardware & tech-enabled services businesses,” said Mark J. Barrenechea, OpenText Vice Chairman, CEO and CTO. 

Madhu Ranganathan, formerly with PriceWaterhouse LLP, holds an MBA in Finance from the University of Massachusetts, is a Certified Public Accountant and a Chartered Accountant (India).

“I would like to thank John for his four years of great service to OpenText, and recognize his commitment to a significant transition period. I wish him all the best in his continued journey,” added Mark J. Barrenechea.

“After four successful years, I have accomplished the objectives Mark and I initially set out,” said John Doolittle, EVP & CFO of OpenText.  “I will work closely with Mark, Madhu and the senior management team to ensure a successful transition.”

OpenText Quarterly Business Highlights

  • OpenText added to S&P/TSX 60 Index
  • 30 customer transactions over $1 million, 14 OpenText Cloud and 16 on-premise
  • Financial, Consumer Goods, Services, Technology and Public Sector industries saw the most demand in cloud and license
  • Customer wins in the quarter included Tata Consultancy Services, Canon Electronics, WTC Captive Insurance Company, gkv informatik, TAFE Queensland, Peabody, Pandora Media, Helaba Invest, Air France-KLM, ConvaTec, County of Los Angeles, OCHIN, Zurn, US WorldMeds, Syngene, Adif, Informática del Ayuntamiento de Madrid, Transports Metropolitans de Barcelona, OILES Corporation, FreightVerify, Nifco Inc.,Campari Group, Froneri International, Malakoff Médéric, MetaSource, Opel Automobile GmbH, Broadcom Limited, Zodiac Aerospace, A1 and Elcom
  • OpenText expands operations in India and announces on-going investment in people, infrastructure and customers

Dividend Program Highlights

Cash Dividend
As part of our quarterly, non-cumulative cash dividend program, the Board declared on January 30, 2018, a cash dividend of $0.132 per common share. The record date for this dividend is March 2, 2018 and the payment date is March 23, 2018. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of the Board of Directors.

Summary of Quarterly Results              
  Q2 FY18 Q1 FY18 Q2 FY17 % Change

(Q2 FY18 vs
Q1 FY18)

  % Change

(Q2 FY18 vs
Q2 FY17)

Revenue (million) $734.4   $640.7   $542.7   14.6 %   35.3 %  
GAAP-based gross margin 67.3 % 65.1 % 69.0 % 220   bps (170)   Bps
GAAP-based operating margin 22.7 % 13.6 % 19.7 % 910   bps 300   Bps
GAAP-based EPS, diluted(1) $0.32   $0.14   $0.18   128.6 %   77.8 %  
Non-GAAP-based gross margin (2) 73.9 % 72.2 % 73.8 % 170   bps 10   Bps
Non-GAAP-based operating margin (2) 36.5 % 31.4 % 34.0 % 510   bps 250   Bps
Non-GAAP-based EPS, diluted (2)(3) $0.76   $0.54   $0.54   40.7 %   40.7 %  






FUJIFILM Holdings and Xerox Announce Agreement to Combine Fuji Xerox Joint Venture with Xerox

Creates a Global Leader in Innovative Print Technologies and Intelligent Work Solutions

  • Xerox shareholders to receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, and 49.9% of the combined company; Fujifilm to own 50.1%
  • Combined company to deliver at least $1.7 billion in total cost savings, with $1.2 billion to be achieved by 2020
  • Accelerates path to revenue growth through global reach, industry-leading scale and enhanced innovation capabilities
  • Well-positioned to lead in growing business areas such as high-speed inkjet, industrial print and workplace solutions, while leveraging Fujifilm’s extensive technologies
  • Combined company will have enhanced financial flexibility for future growth investments and capital returns
  • Combined company will have dual headquarters in Norwalk, CT, U.S. and Minato, Tokyo, Japan, and will maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions

FUJIFILM Holdings Corporation (“Fujifilm”) (TSE: 4901) and Xerox Corporation (“Xerox”) (NYSE: XRX) today announced that they have entered into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture. The combined company will be a global leader in innovative print technologies and intelligent work solutions with annual revenues of $18 billion and leadership positions in key geographic regions.           

This proposed combination provides Xerox shareholders with significant cash at closing, as well as a substantial interest in the significantly enhanced combined company. Under the terms of the agreement, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, funded from the combined company’s balance sheet, and own 49.9% of the combined company at closing. The cash dividend represents more than 30% of Xerox’s unaffected share price of $30.35 based on closing share price as of January 10, 2018. Fujifilm will own 50.1% of the combined company and provide important operational support and transformational leadership.

The transaction has been unanimously approved by the Boards of Directors of both Fujifilm and Xerox. The combined company will be named “Fuji Xerox” and trade on the NYSE under the ticker XRX. The new Fuji Xerox will have dual headquarters in Norwalk, CT, U.S. and in Minato, Tokyo, Japan, with a presence in over 180 countries. The combined company will go to market and maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions.

Shigetaka Komori, chairman and chief executive officer of Fujifilm, said, “Fujifilm and Xerox have fostered an exceptional partnership through our existing Fuji Xerox joint venture, and this transaction is a strategic evolution of our alliance. The Document Solutions business represents a significant part of Fujifilm’s portfolio, and the creation of the new Fuji Xerox allows us to more directly establish a leadership position in a fast-changing market. We believe Fujifilm’s track record of advancing technology in innovative imaging and information solutions – especially in inkjet, imaging, and AI areas – will be important components of the success of the new Fuji Xerox.”

Mr. Komori added, “I am confident that Fujifilm’s ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm. We are delighted to welcome Xerox and its employees to the Fujifilm family and look forward to combining our strengths towards jointly shaping the future of our industry.”

Jeff Jacobson, Chief executive officer of Xerox, said, “The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders. The new Fuji Xerox will be better positioned to compete in today’s environment with truly global scale, increased presence in fast-growing markets, and innovation capabilities to effectively meet our customers’ rapidly-evolving demands. In addition, the combined company’s strong financial profile will enable investments that support continued market leadership, while also providing opportunities for increasing capital returns over time.”

Robert J. Keegan, chairman of Xerox’s Board of Directors, said, “Today’s announcement follows a comprehensive review of our strategic and financial alternatives led by Xerox’s independent directors that began after the separation of Conduent in 2016. Upon careful consideration of all alternatives available to the company, the Board of Directors concluded that this combination is clearly the best path to create value for our shareholders. An attractive, certain cash dividend, together with participation in the future success of the combined company, presents a compelling value equation for Xerox shareholders. We are excited to strengthen our longstanding relationship with Fujifilm as we enter the next phase of Xerox’s transformation journey.”

Clear Leader in Innovative Print Technologies and Intelligent Work Solutions
Xerox shareholders will have the opportunity to participate in the new Fuji Xerox’s accelerated revenue trajectory and long-term value creation potential. The transaction builds on the 56-year collaborative history between Fujifilm and Xerox to create a global leader in innovative print technologies and intelligent work solutions with enhanced scale and innovation capabilities:

  • Global leader with combined revenue of approximately $18 billion and nearly $120 billion total addressable opportunity.
  • Enhanced scale with presence in over 180 countries and covering key geographies including North America, Japan, Europe, Asia Pacific and China.
  • Combined leadership with a strong track record of operational excellence, transformation experience, customer relationships and industry expertise.
  • Improved revenue profile and growth trajectory by leveraging the combined expertise, competitive strengths and geographic reach of the two companies.
  • World-class innovation capabilities to define the future of innovative print technologies and intelligent work solutions by bringing together two R&D and innovation leaders, along with Fujifilm’s extensive expertise. The new Fuji Xerox will be well-positioned to lead in growing areas such as high-speed inkjet, packaging, industrial print and workplace automation, as well as future development opportunities in artificial intelligence, machine learning, internet of things and augmented reality.
  • Strengthened balance sheet and cash flow generation to provide flexibility to support strategic investments in growth and enable increasing capital returns

Significant Value Creation Opportunity
This highly synergistic combination is expected to deliver at least $1.7 billion in total annual cost savings by 2022, with approximately $1.2 billion of the total cost savings expected to be achieved by 2020. The targeted cost savings represent approximately 10% of the total cost base of the new Fuji Xerox and will drive significant margin expansion over the next four years. 

Of the total $1.7 billion cost savings, $1.25 billion is related to the synergies that will be achieved through the transaction. In addition, the combined company will benefit from a cost reduction program commencing immediately at the existing Fuji Xerox joint venture, which is targeted to generate approximately $450 million of cost savings on an annualized basis. These amounts are incremental to Xerox’s ongoing Strategic Transformation initiatives. The new company expects to incur approximately $1.4 billion in one-time integration and restructuring costs, mainly in the first three years.

The new Fuji Xerox will also have significant revenue synergy opportunities over time as it capitalizes on its global reach, industry-leading scale and enhanced innovation capabilities. Importantly, the combined company will have an increased total addressable opportunity estimated at nearly $120 billion and a strong presence in attractive growth markets, allowing the new company to become more competitive and better able to serve customers and business partners globally.

Balance Sheet and Capital Allocation
The new Fuji Xerox expects to maintain investment grade credit ratings at closing. The new company will maintain Xerox’s current $1.00 annual dividend per share and commitment to return at least 50 percent of free cash flow to shareholders. The enhanced financial flexibility of the combined company is expected to allow for greater capital deployment toward targeted growth initiatives, share repurchases and increased dividends over time.

Leadership and Governance
Upon close of the transaction, Jeff Jacobson will serve as Chief executive officer of the new Fuji Xerox.

The combined company’s Board of Directors will include 12 members, seven of whom will be appointed by the Fujifilm Board. Five independent directors will be appointed from the Xerox Board. Shigetaka Komori will serve as chairman of the board.

Financing Commitments
Financing commitments of $2.5 billion have been provided by Citigroup Global Markets Inc. and Morgan Stanley Senior Funding, Inc.   

Path to Completion
The transaction, which is expected to close in the second half of calendar year 2018, is subject to the satisfaction of customary closing conditions and regulatory approvals and approval by Xerox shareholders.


Iron Mountain Enters into Agreement to Expand Presence in China with Acquisition

Agreement to acquire Chinese records management operations of Santa Fe A/S delivers on strategy to expand operations in key emerging markets

 Iron Mountain Incorporated® (NYSE: IRM) today announced it has entered into an agreement to acquire the China records and information management operations of Santa Fe Group A/S, a leading provider of services for international mobility and relocation. The acquisition includes five facilities in four locations in China – Beijing, Shanghai, Dalian, and Guangzhou – serving 700 customers, with storage volumes that include one million cubic feet of records and 51,000 data protection assets, expanding the company’s current operational footprint to 11 facilities in China. The transaction is expected to close later this year.

Established in 1980, Santa Fe has grown to become the leading global mobility services company with operations on six continents providing global, regional or local solutions, including commercial services for office moving, records management, furniture, fixtures and equipment, and specialty art and other special project shipping and exhibition services. 

The acquisition expands upon Iron Mountain’s prior acquisition of Santa Fe’s operations in 10 European and Asian regions that closed in 2016 and earlier in 2017. Iron Mountain’s footprint in Asia now includes a network of 16 facilities in mainland China and an additional 36 facilities across Hong Kong, Macau, Taiwan, Singapore, Malaysia, Thailand, South Korea, the Philippines and Indonesia, serving the storage and information management needs of more than 8,600 customers with services for records information management, data storage, document imaging and secure destruction.

“Our agreement to purchase Santa Fe’s information management operations in China supports Iron Mountain’s strategy to drive growth in key emerging and international markets through acquisition,” said Ernest Cloutier, executive vice president and general manager, International for Iron Mountain. “When seeking opportunities to expand our presence in these regions, we look to acquire or invest in established local companies that share our focus on security and trust as cornerstones of excellent customer service. Coupled with the prior acquisition of Santa Fe’s operations in Europe and Asia, this acquisition will give us a significant presence in the Chinese market, and we look forward to maintaining the high standard of customer service for Santa Fe’s customers.”


AbacusNext Expands Technology-as-a-Service Platform with Acquisition of HotDocs

Pioneer and Global Leader in Document Automation, HotDocs, Becomes Part of the AbacusNext Family of Business Management Solutions

AbacusNext® is pleased to announce the acquisition of HotDocs, the global leader in document automation. Integration of HotDocs into the existing technology solutions for legal, accounting, and business management makes AbacusNext the most complete technology provider to the professional services industry.

Highlights of Acquisition:

  • HotDocs is the leading provider of document automation software, with customers in 60 different countries and a user-base, globally, that exceeds one million.
  • AbacusNext pioneered the only Compliance-Ready™ suite of technology solutions designed exclusively to cloud-enable desktop, mobile and SaaS applications in a single sign-on, secured and fully managed environment.
  • HotDocs is widely used in the legal, banking, insurance, government, public and corporate sectors, for increasing accuracy, reducing cost, mitigating risk, and improving efficiency in the generation of complex documentation. Users can quickly and efficiently generate customized documents such as contracts, sales agreements, government forms, and loan documentation.
  • HotDocs Market, the standalone marketplace and publishing platform, gives professionals access to thousands of premium templates. Utilized by over 9,000 users, HotDocs Market is populated with content created by leading publishers and state bar associations.
  • AbacusNext’s combined user base, 1.5 million worldwide, will benefit from the most compelling products and services portfolio in the industry, including case management and practice management software solutions, private cloud hosting, Desktop-as-a-Service (DaaS), IT infrastructure management, security endpoint protection, and business automation.

This caps a year of expansion for AbacusNext—which saw acquisitions of Results Software, an award-winning CRM, OfficeTools, an industry leading practice management application, and Cloudnine Realtime, a hosting platform for accounting firms. The combination represents a unique opportunity to bring end-to-end technology services to existing clients, and AbacusNext will be positioned to capture significant market share in a highly fragmented market as the first company to provide a comprehensive suite of enterprise-level technology services and products.

In addition to core products, AbacusNext acquires HotDocs Market, an online ecommerce marketplace that allows clients to purchase and use HotDocs templates whenever and wherever they want. This unique, self-contained e-store built by HotDocs will ultimately allow on-demand access to products and templates across the unified AbacusNext portfolio. Incorporating HotDocs Market into the AbacusNext ecosystem will deliver yet another game-changing automation platform for clients.

“Today marks another milestone as we continue building on our unique technology services platform for our current and future clients,” said Alessandra Lezama, CEO of AbacusNext. “HotDocs’ document automation software is the perfect addition to our portfolio and will make an immediate impact for our client base of legal and accounting firms. By leveraging the HotDocs platform and support staff, we’ll be able to offer organizations greater business efficiency than ever before, with the broadest value proposition to support customer growth. The combined company will have an unmatched position in serving clients by providing a complete end-to-end solution.”

Rapid technology changes in recent years, together with increased pressure to reduce costs and increased mobility, is driving the movement to cloud-enable firms in the professional services industry to considerably reduce their costs and increase revenues. With this acquisition, AbacusNext builds HotDocs service offerings into its platform, allowing deeper relationships with business clients by providing the solutions they need to maximize operational efficiency and strengthen profit margins.

“HotDocs and AbacusNext work across many of the same markets and are a natural fit,” said Russell Shepherd, outgoing CEO of HotDocs. “I was looking for an acquirer with the same grand scale of ambition as the HotDocs team, and Abacus has the ambition to take the combined businesses on to even greater heights. HotDocs offers Abacus the opportunity to expand vertically and internationally in one bold strategic move, through the acquisition of a global, market leading brand, and I am delighted to be passing on the leadership and ownership of HotDocs to this successful and expanding company.”

Steve Spratt, COO at HotDocs, commented, “HotDocs document automation technology will enhance the existing product suite that AbacusNext already provides to its impressive client base and the 11,500 existing HotDocs client organizations will now have access to new CRM, practice management and hosting services under one roof. We welcome this new partnership and I look forward to sharing the benefits it brings with existing and new customers across our key verticals of banking, legal and large enterprise.”