ITESOFT has entered into exclusive negotiations to acquire software company W4, one of Europe’s leading BPM players.

Highly strategic merger represents a significant new step in the future development of ITESOFT

ITESOFT, a Europe-based company that develops document-centric process automation solutions, announces it has entered into exclusive negotiations to acquire 100% of the capital of W4 from its shareholders.

The plan was presented to the staff representative bodies on 21 May 2015. The exclusive negotiation period will be used to finalize a draft agreement. The deal, along with the publication of price and terms of payment, could take place as soon as August.

W4, a European leader in Business Process Management

Founded in 1996, based in Ile de France, W4 is a French software company leader in the field of Business Process Management (BPM) segment, with a recognized offering that integrates all components of a complete BPM suite.

BPM is considered a key technology in the digital transformation of companies.

W4 has more than 300 clients, mainly large accounts, which notably include: CNAV (French State pension fund), SFR, Generali, Orange, Sanofi, Hachette Filipacchi, Prisma Media, Bred, Air Liquide, Cunningham Lindsey, Virgin Mobile and the Cour des Comptes (French state finance control organization).

W4 is covered by most major analysts. Gartner Group recently included W4 in its Enterprise Business Process Analysis (EBPA) Market Guide.

In 2014, W4 announced an audited company turnover of €4.8 million and an estimated EBIT margin based on IFRS of 8.5%. Its licence sales grew by 30% over the period to €1.25 million. In December 2014, the company had a total headcount of 45, a cash position of €2.1 million and insignificant financial debt.

A historical alliance

ITESOFT has been owning 5.59% of W4’s capital since 2005, and has been a member of its Supervisory Board.

In 2013, ITESOFT and W4 entered into a commercial and technological partnership to better meet the needs of companies looking for flexible solutions offering integrated management of their business processes.

Through this partnership, ITESOFT has been able to offer process optimisation across the entire business chain, from omnichannel capture (paper, email, and mobile) through automated business processes, with end-to-end, real-time steering and supervision, and a particular focus on fraud detection.

An operation that would generate significant synergies

W4’s integration will increase the technological and commercial benefits already displayed by the current partnership.

A merger between ITESOFT and W4 would offer the Group a number of synergies:

‐ Strategically, a future growth driver for the Group, with the acquisition of a technological foundation.

‐ Commercially, optimization of sales based on cross-business opportunities and the client portfolios of both structures;

‐ In marketing terms, increased visibility leveraging the current interest in BPM;

‐ Financially, capitalizing on shared overheads.

As part of the acquisition, Laurent Hénault and Jean-Luc Saouli, the two top managers of W4, would keep their positions at the helm of the company and would join ITESOFT’s Management Committee.

Philippe Lijour, CEO of ITESOFT, says of the merger:” We are very happy to announce the plans for the acquisition of W4, whose BPM technologies are considered among the best in the world. Such a highly strategic merger would represent a significant new step in our future development.”

Laurent Hénault, Chairman of the Executive Board of W4, adds: “Our technology, already used in prestigious European companies, generates strategic, high value added to our customers. ITESOFT’s commercial strength would make it an ideal candidate for a strategic industrial merger and to help speed up our development.”