Category Archives: News

MetaSource acquires Dataimage

MetaSource,  backed by LaSalle Capital, has acquired Salt Lake City-based Dataimage Inc, a provider of business analytics, workflow design, business process automation and electronic document management solutions.

LaSalle Capital and its portfolio company, MetaSource, are pleased to announce the acquisition of Dataimage, Inc. Based in Salt Lake City, UT, Dataimage is an industry leader in business analytics, workflow design and business process automation, and electronic document management solutions. The acquisition of Dataimage broadens MetaSource’s service offerings within technology-enabled workflow services and solutions. Dataimage represents LaSalle Capital’s fifth add-on investment to the MetaSource platform.

Dataimage Co-Owner, Scott Morgan, commented, “MetaSource’s reputation for integrity and excellence speaks for itself and fits seamlessly with the vision we had for this company when we founded it. Needless to say, we are very happy to join the MetaSource family.”

“The high quality of service, impeccable reputation, and industry and technical knowledge that Dataimage brings to the table perfectly complements our existing suite of solutions and values,” added MetaSource CEO, Adam Östhed.

Nuance and Lexmark Form Strategic Partnership

Nuance to provide document imaging solutions worldwide

Nuance Communications, Inc. (NUAN) today announced a new strategic partnership for Lexmark, a global imaging solutions leader, to provide Nuance document imaging solutions worldwide. Specifically, the relationship includes rights for Lexmark to sell and distribute Nuance AutoStore, Equitrac Office/Express and SafeCom. In addition, Nuance will provide service and support to qualifying customers. For Lexmark, partnering with Nuance reinforces its commitment to providing world-class enterprise-ready workflow solutions that enable organizations to increase productivity and enhance document security.

“Nuance’s proven capabilities and global 24/7 support align to the needs of Lexmark customers,” said Brock Saladin, Lexmark senior vice president and chief revenue officer. “When combined with Lexmark’s industry-leading, award-winning imaging devices, our customers can confidently and securely manage documents throughout their lifecycle.”

“The primary beneficiaries of today’s news are Lexmark’s customers who now have access to the industry’s pre-eminent MFP capture and print management solutions with AutoStore, Equitrac and SafeCom,” said Chris Strammiello vice president of global alliances & strategic marketing, Nuance Document Imaging. “Utilizing Nuance’s solutions, Lexmark customers can enhance their document workflows to increase productivity and efficiencies. Simultaneously, organizations gain control of document security to better secure protected information against unauthorized access by individuals in and outside of the organization.”

Nuance Document Imaging provides the software solutions and expertise required by professionals and organizations to gain optimal control of their document and information processes. The company’s expansive portfolio enables strict compliance with information security policies and regulations organizations face, reducing risk and assuring employees they have complete control over their documents and information. The comprehensive suite of leading edge solutions enables organizations to streamline and eliminate gaps across the full spectrum of workflows spanning the lifecycle of their documents from origin to archiving. Nuance’s cross-platform compatibility provides seamless deployment across MFPs, printers, desktops, and mobile devices for IT administrators, while the consistent, familiar and intuitive user-experience delivers more efficient and natural interactions with the technologies used to create, capture, and process documents.

Thoma Bravo to Acquire Lexmark’s Enterprise Software Business

 Upon closing of the transaction, the Perceptive Software business, including Perceptive Intelligent Capture, Acuo VNA, PACSGEAR and Enterprise Medical Image Viewing will be sold to Hyland Software

Thoma Bravo today announced it has entered into a definitive agreement with Lexmark International Inc., a global imaging leader, to acquire Lexmark’s Enterprise Software business, which is made up of three primary businesses: Kofax, ReadSoft and Perceptive Software. The closing of the transaction is subject to usual and customary closing conditions and regulatory approvals, and is expected to occur in the third quarter of 2017.  Apex Technology Co Ltd, PAG Asia Capital and Legend Capital Management Co, LTD, who acquired Lexmark in November of 2016, support the sale of the Enterprise Software business.

Industry Veteran Ralph Gammon Joins InfoSource As Manager For Americas

Ralph Gammon, long-time editor and publisher of the Document Imaging Report, has joined infoSource as regional manager for the Americas, covering the document scanner market. infoSource is a leading market research firm that focuses on the document printing and scanning spaces across Europe, the Middle East, Africa, and the Americas. infoSource prides itself on the accuracy of its data and the flexibility with which its customers can access and view that data on the latest version of its online tool—the infoSourceDB.

Gammon has been editor of DIR (as his newsletter is known throughout the industry) since 1998, and added the responsibilities of publisher in 2002. He has been covering the document scanner market and related technologies in-depth and will bring additional perspective and depth of coverage to the infoSource team. Gammon will be responsible for compiling reports, forecasts, and digests for the North and Latin American document scanner markets. All this information will be available to infoSource subscribers.

“I have known the folks at infoSource for several years now, since they started covering the Americas markets,” said Gammon. “I am excited to be joining them and looking forward to helping develop and promote their outstanding service. My experience in market analysis, specifically related to document imaging, and their expertise with compiling data-driven reports in this industry should make for a great marriage.”

“Ralph, who will be known to many of our clients already, with his in-depth knowledge of the office hardware and software markets, is a perfect complement to the existing infoSource document scanning research team serving both the European and Americas markets,” said Mark Nicholson, service director of infoSource. “I would like to extend a warm welcome to him and say how much I look forward to Ralph’s assistance with the continued global expansion of infoSource’s scanning program.”

Gammon will continue to edit and publish DIR, the leading insider newsletter in the document capture and ECM markets.

ibml hires Martin Birch, an experienced and growth-minded executive, as President and Chief Executive Officer

 

ibml today announced the appointment of Martin Birch as President, Chief Executive Officer and member of the company’s board, effective immediately. He succeeds Derrick Murphy, who is leaving after 25 years with the company, including the last ten as Chief Executive Officer.

“Martin is a well-known, client-centric executive with deep knowledge of the capture solutions space, having been a partner to ibml and advocate for ibml’s products for many years,” said Helen Yang a member of the Board of Directors for ibml. “Throughout his career, he has demonstrated
a natural ability to work hand in hand with customers and employees to deliver growth. I look forward to ibml’s promising future under Martin’s capable leadership.”

Birch brings with him over 15 years of experience as a leader in the enterprise content management industry. Previously, Birch spent 11 years with Kodak-Alaris and Kodak Ltd., as Managing Director of Document Imaging in Europe, Africa, Middle East and Russia and most recently as General Manager of Information Management in the United States and Canada. Martin will be based in Birmingham, Alabama.

“ibml is a company I have long admired, a company possessing talented people with a history of delivering market leading innovation. Going forward, we will be keenly focused on driving growth through providing best in class products, software, and services for our customers and partners,” said Birch. “I look forward to working with our board, management team and dedicated employees to continue to build on ibml’s position as a leader in the information management industry.”

Upland Software announces acquisition of RightAnswers, raises 2017 guidance and raises adjusted EBITDA margin target to 40%

Upland Software, Inc. (Nasdaq: UPLD), today announced that it has acquired RightAnswers, Inc., an award-winning, cloud-based knowledge management system. Upland today also raised its 2017 guidance to reflect the RightAnswers acquisition and raised its long-term Adjusted EBITDA margin target to 40%.

“We are pleased to welcome RightAnswers and their valued customers and partners to Upland,” said Jack McDonald, Chairman and CEO of Upland Software. “This strategic acquisition is a great product addition for current Upland customers looking to enhance their customer service, IT support, and enterprise-wide collaboration capabilities.”

“We’re excited to join Upland both because of the great product fit, and because of our shared vision of 100% customer success,” said Jeff Weinstein, President and CEO of RightAnswers. “The opportunity to leverage the UplandOne operating platform to amplify our product innovation, service, and support make this a great transaction for RightAnswers’ customers and partners,” said Mark Finkel, Chairman and Founder of RightAnswers.

The purchase price paid for RightAnswers was $17.2 million in cash at closing, net of cash acquired, and a $2.5 million cash holdback payable in one year (a portion of which is available to satisfy indemnification claims). The foregoing excludes any potential future earn-out payments tied to additional performance-based goals. Upland expects the acquisition to generate annual revenue of approximately $9 million, subject to reductions for a deferred revenue discount as a result of GAAP purchase accounting. The acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and will be immediately accretive to Upland’s Adjusted EBITDA per share.

Business Outlook

Upland today also announced that it has raised its full year 2017 guidance to reflect the RightAnswers acquisition, raising revenue, recurring revenue, and Adjusted EBITDA guidance ranges. The increase in 2017 revenue guidance below is net of an estimated $1.7 million 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 April 30, 2017.

For the full year ending December 31, 2017, Upland expects reported total revenue to be in the range of $87.0 to $91.0 million including recurring revenue in the range of $76.0 to $79.0 million, for growth in recurring revenue of 19% at the mid-point over the year ended December 31, 2016. For the full year ending December 31, 2017, Adjusted EBITDA is expected to be in the range of $26.0 to $29.0 million, for an Adjusted EBITDA margin of 31% at the mid-point, representing growth of 118% at the mid-point over the year-ended December 31, 2016.

Finally, Upland today raised its long-term Adjusted EBITDA margin target from 35% to 40%.

“We are today raising our long-term Adjusted EBITDA margin target to 40% to reflect the increased customer loyalty and operating efficiency we are seeing with UplandOne and as we scale,” said Mr. McDonald.

 

PE-backed Gimmal acquires RecordLion

First acquisition since a growth investment from Rubicon Technology Partners

Gimmal LLC announced the acquisition of RecordLion, Inc., an information governance and records management software company headquartered in St. Louis, MO.

With the acquisition of RecordLion®, Gimmal extends its offering to the application of policy outside SharePoint® and Office 365™. This approach eliminates the cost and the time traditionally needed to migrate content from unmanaged network file shares or legacy systems into a modern digital workplace strategy.

“The combination of Gimmal and RecordLion® extends our leadership in information governance and records management by creating the most advanced Digital Workplace solution with the largest customer base of any company that manages content in SharePoint® and Office 365™. Now we can provide our customers with the flexibility to manage content in-place, significantly improving the scope of content under governance in an affordable manner,” said David Quackenbush, CEO of Gimmal. “Today we are uniting our strengths to provide greater value to customers through a more complete and integrated product suite.”

“We are excited to be part of Gimmal’s market leading platform, including its DoD 5015.2-certified records management and leading SAP content services solutions on the Microsoft stack,” said Chris Caplinger, President and Founder of RecordLion®.

Gimmal also announced today that Chris Caplinger will join Gimmal as the combined company’s VP of Engineering to lead Gimmal’s continued product innovation. “We could not be more excited to welcome Chris to Gimmal where he will be an invaluable member of our team,” said David Quackenbush. “Chris’s impressive leadership experience and success with building RecordLion® will be instrumental in accelerating the strategic and technology growth of our business.” Prior to RecordLion®, Chris was a co-founder of KnowledgeLake, where he served as Chief Technology Officer.

RecordLion® represents the first acquisition since Gimmal announced a growth investment from Rubicon Technology Partners in January 2017. Rubicon is a private equity firm specializing in enterprise software companies and invested in Gimmal to help drive Gimmal’s growth through new product innovations and further acquisitions of complementary technologies.

Clearlake Capital Acquires NetDocuments

Santa Monica-based private equity investor Clearlake Capital Group announced this morning that it has acquired NetDocuments, a provider of cloud-based document management, email management, and collaboration software for law firms and corporate legal and compliance customers.

Financial details of the acquisition were not announced. Clearlake Capital said the company will continue to be led by Matt Duncan, CEO, and Alvin Tedjamulia, CTO. NetDocuments is based in Lehi, Utah, and was founded in 1999.

 

M-Files Acquires StreamDesign to Expand ECM Market in France

Continues Investments in Key European Markets

M-Files Corporation today announced the acquisition of StreamDesign, a consulting and information management services company based in France.

M-Files has built a strong presence in France via the company’s channel network, with StreamDesign serving as one of its most successful partners in the region. With the acquisition of StreamDesign, M-Files has established its French headquarters that will enable the company to accelerate the growth of its customer base through its growing channel partner network, as well as via direct sales and support activities.
 

The M-Files acquisition of StreamDesign comes as an increasing number of French enterprises are recognizing information management as a strategic priority. As a result, many organizations in the region are looking for solutions to help them eliminate manual, error-prone processes and replace existing ECM systems that have proven to be complicated and difficult to use.

“M-Files is dedicated to helping French companies address their demanding information management needs with our uniquely simple and flexible approach that led Gartner to list M-Files as the only visionary in their ECM Magic Quadrant,” said Jim Geary, Executive Chairman at M-Files. “Our acquisition of StreamDesign accelerates our growth plans in France by continuing to elevate the level of support we provide our partners and ensuring we deliver the highest level of customer service and support possible to our customers.”

 

 

Novitex and SourceHOV combine to form Exela Technologies

Affiliates Of Apollo And HGM Agree To Combine Novitex And SourceHOV With Quinpario Acquisition Corp. 2 To Form Exela Technologies, A Public Company In A Transaction Valued At $2.8 Billion

SourceHOV, LLC (“SourceHOV”), Novitex Holdings, Inc. (“Novitex”) and Quinpario Acquisition Corp. 2 (Nasdaq: QPAC, QPACW and QPACU) (“Quinpario”), a publicly traded special purpose acquisition company, today announced that they will combine to create a leading industry-solutions provider for financial technology and business services, delivering mission critical, technology-enabled multichannel information services to over 3,500 blue-chip customers in 55 countries. The parties have entered into a definitive business combination agreement for the proposed transaction, which is expected to close during the second quarter of 2017.

Novitex, a North American provider of technology-driven managed services, is owned by certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) (NYSE: APO). SourceHOV is majority owned by HandsOn Global Management, LLC (“HGM”) and affiliates, and provides Transaction Processing Solutions (“TPS”) and Enterprise Information Management (“EIM”) solutions. 

The transaction is valued at approximately $2.8 billion, representing a 7.3x multiple of the projected 2017E pro forma EBITDA for the combined company of $385 million. The purchase price will be funded through a combination of $1.35 billion in new debt financing, cash from Quinpario, rollover equity and cash on hand at closing, including from equity financing.  Shareholders of SourceHOV and Novitex are rolling 100 percent of the current equity, and will be the majority shareholders of the combined company.  All proceeds from the Quinpario equity capital contribution will be used for deleveraging, to pay fees and expenses for the transaction, and for general corporate purposes.

The combined company is expected to have approximately $1.5 billion in revenue in 2017, adding substantial scale and offering a complementary set of platforms and services to enhance customer offerings. With technology-enabled services deeply embedded in more than 60 percent of the FORTUNE® 100, the combined company will be a core partner for the world’s largest financial services organizations, insurance payers, healthcare providers, law firms, government entities and commercial enterprises.

The merger positions the combined company for accelerated growth, leveraging technology platforms, service offerings and global delivery supported by more than 23,500 employees across the Americas, Europe and Asia. With expanded, innovative offerings for high-volume, mission-critical processes, the combination will provide integrated platform solutions, from data aggregation and workflow to exception management and outcome resolutions.

Ron Cogburn, chief executive officer of SourceHOV, commented, “We are excited about the possibilities the transaction will bring to the business services sector, as it positions us well for growth in our key markets. Our journey from people-intensive to technology-enabled services and our combination with Novitex fundamentally increases our scale, making us a more strategic partner to customers in their quest for digital transformation.”

John Visentin, executive chairman and chief executive officer of Novitex, added, “The combination of Novitex and SourceHOV supports our strategy of serving as an end-to-end provider of innovative cloud-enabled solutions in the document outsourcing industry. This combination allows us to further enhance our strategic focus in providing leading-edge, integrated enterprise information management services.”

The combined company will have a board of directors consisting of eight members, including three directors to be nominated by HGM, two directors to be nominated by Apollo and three independent directors.