Category Archives: News

Upland Software Acquires Kapost, Raises Guidance

Accretive acquisition adds $15 million in annualized revenues, strong customer base, and robust content operations solution for sales and marketing

Upland Software, Inc. (Nasdaq: UPLD), has acquired Kapost. Kapost is an important addition to Upland’s Enterprise Sales Enablement and Customer Experience Management (CXM) solution suites. The acquisition adds approximately $15 million in annualized revenues and will be immediately accretive to Upland’s Adjusted EBITDA per share.

“Kapost brings an established enterprise customer base, experienced team, and sophisticated content operations platform to our sales and marketing solutions,” said Jack McDonald, chairman and CEO of Upland Software. “Moreover, this transaction is immediately accretive to Adjusted EBITDA per share and takes Upland to a $220 million annualized revenue run rate. Our acquisition pipeline is robust, and we are actively pursuing additional opportunities to build out our solution suites.”

Kapost’s cloud-based content operations platform unites revenue teams to speak in one voice across the customer journey by streamlining the content development process at scale. The platform’s open architecture, robust set of APIs, and deep collaboration capabilities help organizations better orchestrate all stages of content planning, production, and distribution. Advanced analytics enable organizations to pinpoint hidden gaps in their content strategy, track content performance, and measure ROI.

“We are thrilled to welcome Kapost’s customers and team members to Upland,” said Sean Nathaniel, Upland’s chief technology officer and executive vice president of Workflow Automation Solutions. “Kapost’s powerful technology and built-in artificial intelligence adds advanced end-to-end content operations capability to our enterprise sales and marketing solutions, allowing complex sales and marketing organizations to boost the impact, relevance, and return on investment of their content.”

The purchase price paid for Kapost was $45.0 million in cash at closing, and a $5.0 million cash holdback payable in 12 months (subject to indemnification claims). Upland expects the acquisition to generate annual revenue of approximately $15.0 million, of which $13.5 million is recurring, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting, estimated as $2.2 million for the remainder of 2019. The acquisition is within Upland’s target price range of 5-8x pro forma Adjusted EBITDA and will generate at least $7.0 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.

Business Outlook

Upland today also announced that it has raised its second quarter and full year 2019 guidance to reflect the Kapost acquisition, raising revenue, recurring revenue, and Adjusted EBITDA guidance ranges. The increase in 2019 revenue guidance below is net of a reduction for a deferred revenue discount as a result of GAAP purchase accounting and all guidance adjustments are prorated for an effective closing date of May 24, 2019.

For the quarter ending June 30, 2019, Upland expects reported total revenue to be between $50.5 and $52.5 million, including subscription and support revenue between $47.2 and $48.8 million, for growth in recurring revenue of 45% at the mid-point over the quarter-ended June 30, 2018. Second quarter 2019 Adjusted EBITDA is expected to be between $17.9 and $18.9 million, for an Adjusted EBITDA margin of roughly 36% at the mid-point, representing growth of 47% at the mid-point over the quarter-ended June 30, 2018.

For the full year ending December 31, 2019, Upland expects reported total revenue to be between $209.0 and $213.0 million, including subscription and support revenue between $195.0 and $198.2 million, for growth in recurring revenue of 44% at the mid-point over the year ended December 31, 2018. Adjusted EBITDA is expected to be between $76.5 and $78.9 million, for an Adjusted EBITDA margin of roughly 37% at the midpoint, representing growth of 46% at the mid-point over the year ended December 31, 2018. The transaction will be immediately accretive to Upland’s Adjusted EBITDA per share.

PDFTron Receives $71 Million Growth Investment Led By Silversmith Capital Partners

New Capital Focused on Accelerated R&D and Strategic Acquisitions

PDFTron Systems announced today that it has secured a $71 million investment led by Silversmith Capital Partners, a Boston-based growth equity firm. PDFTron’s market-leading software development kit (SDK) is used by hundreds of enterprise customers around the world to enable digital transformation initiatives by providing a comprehensive document processing, conversion, and collaboration platform. This investment comes as the company has experienced substantial growth, more than doubling its workforce since the start of 2018.

PDFTron’s flagship product PDFTron SDK provides organizations with a secure, cost-effective, and reliable way to embed advanced PDF and document functionality within their software applications, with seamless integration across all major web, desktop, and mobile platforms. PDFTron’s products help companies increase productivity, while also significantly accelerating their application development lifecycle and reducing time to market. PDFTron is also the creator of XODO, a highly rated and fast-growing document productivity application for consumers and enterprises, powered entirely by PDFTron’s technology stack.

The investment will be used to support PDFTron’s significant R&D and product development resources, and to pursue acquisitions in both North America and Europe.

“We are thrilled to partner with Silversmith for the next phase of PDFTron’s growth,” said Catherine Andersz, Co-Founder & CEO of PDFTron. “Silversmith’s expertise helping enterprise software companies to expand globally made them a perfect choice for us. This investment will allow PDFTron to continue delivering market-leading solutions, while doubling down on our commitment to long-term customer success and satisfaction.”

“At the core of PDFTron is world-class IP and a relentless focus on delivering the best developer experience,” said Jim Quagliaroli, Managing Partner of Silversmith. “We admire the team’s deep passion for building leading software tools and are excited to support their vision to expand globally in the years to come.”

“In an increasingly digital world, PDFTron’s products are serving mission-critical use cases for blue-chip customers across nearly every industry,” commented Sri Rao, General Partner of Silversmith. “We are excited to partner with PDFTron as its first institutional investor, and we look forward to supporting the company’s growth organically and through strategic acquisitions.”

KDI Office Technology announces the purchase of IMR Digital

Acquisition helps preserve past information and brings it to a digital future.

KDI Office Technology, a $38M office technology company in the mid-Atlantic region, has announced the purchase of IMR Digital, a West Hazleton, Pennsylvania-based document conversion services business, from KeyMark. The addition of IMR Digital allows KDI to preserve and protect their client’s one-of-a-kind paper records with new world technology tools that transform the historical past into the digital future.

IMR Digital has been a leading provider of document scanning, imaging and indexing services since 1978. “We couldn’t be more pleased about this acquisition and how IMR Digital enhances our current professional services offering,” says KDI CEO/President, Rick Salcedo. “We can now digitize or convert microfilm and microfiche and provide conversion services for extremely old documents and books, even those from the early 1800s. Customers will also be able to retrieve all of this content very easily with a touch at their keyboard. It’s very exciting.”

The Digital Conversion Specialists at IMR Digital have master craftsman-like skills. This team will stay on with KDI, collaborating with clients to provide document conversion, outsourcing services and secure document storage solutions that tame the paper beast, improve efficiency, enable compliance and ensure security.

“KeyMark remains committed to providing intelligent automation solutions including capture, workflow, case management, and robotic process automation solutions, commented Jim Wanner, CEO of KeyMark. “We want to stay focused on our core competencies and we believe that KDI is the best home for the loyal employees and long-time customers of IMR Digital.”

With the KeyMark sale of IMR Digital, KDI will continue to provide conversion services for aperture, microfilm, microfiche and large format documents to digital formats. KeyMark will continue to partner with KDI on future solutions to offer both document conversion services and automation technologies. KeyMark will retain its Camp Hill-based Regional Office for its Northeast territory. KDI will keep the company name and the brand will be known as IMR Digital, a KDI Company.

Financial terms of the transaction are undisclosed.

Xamcor, Inc. served as the sole advisor to KeyMark for this transaction.

EFI Announces Definitive Agreement to be Acquired by an Affiliate of Siris Capital Group, LLC in all Cash Transaction Valued at Approximately $1.7

EFI Shareholders to Receive $37.00 Per Share and Acquisition Expected to Close by Q3 2019

Electronics For Imaging, Inc. (Nasdaq: EFII) today announced that it has entered into a definitive agreement (the “Agreement”) to be acquired by an affiliate of Siris Capital Group, LLC (“Siris”) in an all-cash transaction valued at approximately $1.7 billion.

Under the terms of the Agreement, which has been unanimously approved by EFI’s Board of Directors, an affiliate of Siris will acquire all the outstanding common stock of EFI for $37.00 per share in cash. The purchase price represents an approximately 45% premium over EFI’s 90-day volume-weighted average price ended on April 12, 2019.

EFI may solicit alternative acquisition proposals from third parties during a “go-shop” period over the next 45 calendar days.  EFI will have the right to terminate the Agreement to enter into a superior proposal subject to the terms and conditions of the Agreement.  There is no guarantee that this process will result in a superior proposal, and the Agreement provides Siris with a customary right to attempt to match a superior proposal.  EFI does not intend to disclose developments with respect to the solicitation process unless and until it determines such disclosure is appropriate or is otherwise required.

“We believe this transaction delivers superior and immediate value to our shareholders while providing us with a partner that can add strategic and operational expertise to our business,” said Bill Muir, Chief Executive Officer of EFI. “We are excited to partner with Siris’ highly experienced team on this next phase of growth for EFI.”

Commenting on the transaction, Frank Baker, a Siris Co-Founder and Managing Partner, said, “EFI is at the forefront of the digital transition in the imaging and print industry, underpinned by a strong software heritage and culture of innovation. We believe that, by partnering with Siris, EFI will be well positioned to capture this transformational opportunity associated with increased digital inkjet penetration, industrial automation and software enablement. We are eager to partner with management to help the Company achieve its strategic objectives.”

Commenting on the transaction, Al Zollar, a Siris Executive Partner, said “EFI has a 30-year legacy of leadership in the digital imaging market, with strong brand equity and a rich history of pioneering innovative solutions for its customers. The Company’s portfolio of mission-critical products and services are united by a common thread of impressive technological enablement and software integration. I look forward to supporting EFI’s strong team to help the Company anticipate evolving customer needs and drive new opportunities for innovation and growth.”

EFI’s Board of Directors has unanimously recommended that its shareholders adopt the Agreement with Siris. Subject to the go-shop, a special meeting of EFI’s shareholders will be held as soon as practicable following the filing of the definitive proxy statement with the U.S. Securities and Exchange Commission(“SEC”) and subsequent mailing to shareholders.

Subject to the go-shop, the proposed transaction is expected to close by the third quarter of 2019 and is subject to approval by EFI’s shareholders, along with the satisfaction of customary closing conditions including antitrust regulatory approvals. The transaction is not subject to any financing conditions. Upon completion of the acquisition, EFI will become wholly owned by an affiliate of Siris.

EFI will file its quarterly report on Form 10-Q reporting its first quarter financial results but does not intend to host a quarterly earnings call.  EFI currently expects Q1 2019 revenue to be between $220 million and $225 million.

Automation Anywhere Unveils the Industry’s Smartest IQ Bot, Making AI Accessible to Millions

Ability to automatically process documents in most any language from anywhere will change the way people work

Automation Anywhere®, the global leader in Robotic Process Automation (RPA), today announced major advances to IQ Bot 6.5™, its artificial intelligence (AI) solution that greatly expands the global market for RPA.

Capable of learning from humans, IQ Bot can now auto-detect, read and process a variety of complex, low-resolution documents and emails in 190 languages as well as process images with the Automation Anywhere Mobile app.

With the global workforce becoming increasingly mobile – with 1.87 billion mobile workers by 20221 -users can now access IQ Bot from a mobile device, process images and have the results emailed to them – all while on the go, so that anybody, anywhere can use it: field workers, home appraisers, insurance adjusters and delivery workers.

Today, an estimated 80 to 90 percent of organizations still manually extract data from documents and emails. The advanced AI capacities of IQ Bot are designed to free up business users around the world from the mundane task of entering data into enterprise applications. Automation of such complex, repetitive tasks liberates people to focus on what humans do best – innovate, collaborate and use their talent to solve business challenges.

“The ability to implement a bot quickly and cost-effectively to automate data capture can dramatically impact a company’s bottom line,” said Harvey Spencer, president of HSA, a leading analyst firm that follows this market. “As organizations eliminate legacy document processing solutions and bots become smarter using AI, the potential market for tasks that can be automated expands significantly. In many ways, RPA companies are at the forefront of this.”

Advances in AI and cloud technologies are rapidly expanding the market for data capture, a $20 billion untapped opportunity, according to a new study by Harvey Spencer Associates (HSA)2 A separate research study found that automation can cut down the cost of processing documents, such as invoices, insurance claims and loan applications, by as much as 84 percent.3

The latest release of IQ Bot, which combines AI with RPA, offers:

  • Unique ability to process low-quality documents and detect handwriting
  • Ability to process documents in 190 languages with localized interface for English, French, German, Japanese, Korean, Spanish, Mandarin and Simplified Chinese
  • Capability to process document images via the new mobile app
  • Advanced AI algorithms for smarter document classification and separation
  • Enhanced integrations to unlock capabilities, such as predictive modeling and chat bots sourced from the world’s largest ecosystem of AI partners

“We believe the full potential of enterprise automation can only be realized when RPA and AI work together,” said Mihir Shukla, chief executive officer, Automation Anywhere. “Today, we are providing universal access to automation, with new language and mobility features in IQ Bot eliminating the friction that limits productivity and helps workers do their jobs better.”

Nintex Acquires Robotic Process Automation Provider EnableSoft

Nintex today announced its acquisition of Robotic Process Automation (RPA) provider EnableSoft, maker of Foxtrot RPA, to bring Nintex customers and partners powerful, easy-to-use RPA capabilities with the fastest time to value.

Among RPA vendors, Foxtrot RPA stands out for “Time to First Value” whether integrating existing processes or building bots from scratch. Thanks to Foxtrot’s combination of both power and ease, the time it takes organizations to recognize real, tangible benefits is hours and days, rather than weeks or months. One U.S. bank, which doubled its assets while keeping flat operations costs, attributes this success to its use of Foxtrot RPA.

“Acquiring EnableSoft Foxtrot RPA delivers on Nintex’s strategic plan for offering the industry’s most complete process platform to manage, automate and optimize business processes across all departments and industries,” said Nintex CEO Eric Johnson. “Foxtrot RPA aligns perfectly with our product design principles: to make solutions that are powerful and easy to use, drive fast time to value, lowest total cost of ownership, and incredible satisfaction. Operations, IT and process professionals use the Nintex Process Cloud to quickly improve how people work, with clicks not code, to deliver robust and flexible solutions to help improve their operations and digitally transform their businesses.”

Maureen Fleming, program vice president of IDC’s Intelligent Process Automation research program, added, “RPA is perfect for breaking down a manual task into automatable steps, and workflow is great for connecting – or gluing – those steps together, ensuring they are completed correctly and able to advance to the next step in a larger business process. RPA and workflow work together to increase the volume of process work that can be automated, and now Nintex offers both.”

Every company has repeatable processes and tasks that can benefit from automation like RPA. Foxtrot offers a platform to make the creation and deployment of RPA bots faster and easier than ever before making it cost effective, enabling a broader set of people and delivering rapid ROI. Foxtrot has gained significant traction in regulated industries, including financial services, banking and healthcare, because of its approach to RPA. Today hundreds of organizations turn to the Foxtrot platform to successfully automate their processes.

“Nintex is providing enterprises with a complete digital business platform that can handle everything from workflow and content automation to digital transaction management to the last mile of automation with RPA,” said Aragon CEOJim Lundy. “Nintex has transformed from its roots in workflow automation to becoming one of the most complete process platforms on the market today.”

Top Image Systems Enters into a Definitive Agreement to Be Acquired by Kofax

Stockholders to Receive $0.86 in Cash per Share

Top Image Systems Ltd. (NASDAQ:TISA) today announced that it has signed a definitive agreement to be acquired by Kofax, a leading supplier of Intelligent Automation software to automate and digitally transform end-to-end processes, and a portfolio company of leading private equity investment firm, Thoma Bravo. Under the terms of the agreement, Top Image Systems stockholders will receive $0.86 per share in cash for each ordinary share of Top Image Systems, representing a 65% premium over Top Image Systems’ volume weighted average price (VWAP) over the past 30 trading days.

Brendan F. Reidy, Chief Executive Officer of Top Image Systems, commented: “We are pleased to announce this transaction with Kofax. The transaction will allow Top Image Systems to continue to provide its innovative content processing and remittance solutions to our customers while benefiting from the substantial resources of Kofax and Thoma Bravo. Our Board of Directors believes this transaction is in the best interest of our stockholders.”

“TIS customers will enjoy single-vendor access to Kofax’s Intelligent Automation solutions that deliver increased efficiency, enabling the human and digital workforces of tomorrow,” said Reynolds C. Bish, Chief Executive Officer of Kofax. “Leveraging TIS’ SaaS expertise will assist us as we further advance the secure cloud capabilities of our end-to-end Intelligent Automation platform.”

The Board of Directors of Top Image Systems has unanimously voted to approve the definitive agreement and to recommend that stockholders approve the transaction. Closing of the transaction is subject to customary closing conditions, including, among others, the affirmative vote in favor of the transaction by holders of a majority of the Company’s outstanding ordinary shares present and voting at a meeting, and required regulatory approvals. It is anticipated that the special meeting of Top Image Systems’ stockholders to vote on the transaction will be held in early 2019, and, if the transaction is approved, the merger would be expected to close shortly thereafter.

The transaction will be financed with cash from Kofax’s balance sheet. There is no financing contingency to the obligations of Kofax to consummate the transaction. 

OpenText Buys Catalyst Repository Systems, Inc.

A Leading Provider of eDiscovery Solutions for the Legal Industry

OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced it has acquired Catalyst Repository Systems, Inc. (Catalyst), a leading provider of eDiscovery solutions for corporate legal departments and top law firms. 

“The joint strength of OpenText and Catalyst confirms our position as a leading provider of eDiscovery technology and combines a powerful set of solutions to help corporate legal departments and law firms seize the opportunities of automation, digital transformation, AI and machine learning,” said Mark J. Barrenechea, OpenText CEO & CTO. “The legal industry is at an important crossroads and OpenText is a strategic choice for legal industry leaders, ensuring they can continue to offer compelling service, help their organizations navigate uncertain regulatory environments, and secure successful outcomes for their clients.” 

Catalyst will be integrated into OpenText’s Discovery Solutions, helping customers further leverage their technology investments and benefit from OpenText’s continued investments in innovation. 

Barrenechea further added, “We welcome Catalyst’s leading corporate and legal customers, partners and employees to the OpenText community. We are building the world’s top legal technology platform and the Catalyst team and product further strengthen our portfolio and expertise.” 

The purchase price of the acquisition is approximately $75 million in an all-cash transaction. Further information for investors, including an overview presentation regarding Catalyst, can be found at: investors.opentext.com/mergers-and-acquisitions. 

Dropbox to Acquire HelloSign

Acquisition expected to improve document workflows for hundreds of millions of Dropbox users

Dropbox, Inc. (NASDAQ: DBX), today announced it has entered into a definitive agreement to acquire HelloSign, an eSignature and document workflow platform with more than 80,000 customers.

“With over an exabyte of data on our platform, millions of people already use Dropbox as a place to collaborate on their most important content,” said Dropbox Co-founder and Chief Executive Officer Drew Houston. “We’re thrilled to welcome HelloSign’s talented team to Dropbox and add their capabilities to our product suite. HelloSign has built a thriving business focused on eSignature and document workflow products that their users love. Together, we can deliver an even better experience to Dropbox users, simplify their workflows, and expand the market we serve.”

Some of life’s most important moments require signing documents or completing forms — from opening an investment account or buying an apartment, to signing a major new customer or hiring a new employee. But even today, millions of people still rely on legacy pen and paper to complete these tasks, resulting in an inefficient and fragmented experience. HelloSign’s simple, easy-to-use product suite spans capabilities like eSignature and online fax with HelloSign and HelloFax, to fully customizable document workflow solutions with HelloWorks and HelloSign API — improving everyday processes while also helping customers close deals faster, onboard new hires with ease, and complete documents without errors.

“We waste so much time using clunky tools that were designed for yesterday’s work environment,” said HelloSign Co-founder and Chief Executive Officer Joseph Walla. “Over the past 10 years, Dropbox has built a trusted global brand focused on transforming people’s working lives. We share a design philosophy based on building the best experience for end-users, fueling our efficient business models and sales strategies. Together with Dropbox, we can bring more seamless document workflows to even more customers and dramatically accelerate our impact.”

Under the terms of the agreement, Dropbox will acquire HelloSign for $230 million in cash, subject to customary purchase price adjustments and closing conditions. The acquisition is expected to close in Q1 2019.

KnowledgeLake, Inc. acquires RPA technology company RatchetSoft, LLC after years of successful partnership

KnowledgeLake today announced the acquisition of RatchetSoft, a U.S.-based robotic process automation (RPA) technology provider. KnowledgeLake customers and partners can now leverage intelligent document capture, workflow, and RPA in a next-generation cloud content platform—all from one vendor. By bolstering its portfolio with RatchetSoft’s attended and unattended ‘bot’ technologies, KnowledgeLake can help businesses leapfrog persistent roadblocks to digital transformation.

“We are impressed with KnowledgeLake’s vision and direction as a cloud services-based capture solution—the acquisition of an RPA vendor at this time rounds out its offering and brings new capability to both companies’ customers,” said Harvey Spencer, President of HSA Inc, the leading analyst company covering the world of capture with RPA software. “There is a big opportunity for capture services within the Microsoft channel, and adding RPA to KnowledgeLake’s feature stack puts them ahead of the competition.”

Organizations of all sizes use Ratchet-X RPA to automate and integrate existing processes and applications without having to modify existing software, nor involve the related software vendors. The solution provides KnowledgeLake a way to easily connect to line-of-business systems; the company has deployed Ratchet-X RPA in customer environments since 2012.

“We are very excited to join the KnowledgeLake organization,” said Joe Labbe, CEO and founder of RatchetSoft. “The KnowledgeLake platform was able to immediately absorb our RPA technologies, creating the most unique incorporation of RPA, machine learning, and process automation in the market today.”

The acquisition, finalized December 31, is built upon a longstanding, successful partnership between the two companies. RatchetSoft adds hundreds of customers to the KnowledgeLake base, as well as several partnerships with leading ECM providers that leverage RatchetSoft to participate in the booming RPA market. The full stack of RatchetSoft intellectual property (IP) is now available as part of the KnowledgeLake platform.

Ron Cameron, KnowledgeLake CEO, said: “We’ve chosen one of the top RPA solutions in the market; RatchetSoft’s IP is advanced in the RPA space. We’ve worked with RatchetSoft for several years and have experienced first-hand how well their channel-enabled and industry-leading RPA solutions fit with the KnowledgeLake platform and our customer base. Combining their technologies with our next-generation document capture and process portfolio presents an unparalleled opportunity to disrupt and innovate in the content services space. Our customers and partners will be extremely well served with the addition of this strategic offering.”