USA
Deal Maker of the Year Awards 2013
WINNER - KARL DOYLE DEAL: Kofax acquires Altosoft
NAME: Karl Doyle COMPANY: Kofax POSITION: Senior Vice President of Corporate Development
WEBSITE:
www.kofax.com BIO
Karl Doyle is Senior Vice President of Corporate Development. Karl has been in the ECM industry for more than 20 years as an industry analyst, business development executive and consultant. Most recently, Karl acted as an external consultant providing acquisition advisory services for many companies in the ECM space, as well as Kofax. During his 15 year tenure at IBM FileNet, Karl held a variety of executive leadership, product management and business development positions, including Director of Business Development and Strategy, and VP Business Development, where he was instrumental in the IBM acquisition of FileNet. Karl began his ECM career in 1988 as an industry analyst covering the European document imaging and workflow markets.
DEAL OVERVIEW Q
Please summarise the transaction:
Kofax acquired Altosoft, Inc., a leading developer of business intelligence and analytics software. Altosoft enhanced Kofax’s product portfolio with near real-time process and data analytics, visualization and ETL capabilities.
Kofax acquired all of Altosoft’s stock for $13.5 million in cash. Additional payments may be
made subject to the achievement of specific annual revenue growth rates and EBITDA levels during calendar years 2013, 2014 and 2015 and certain management employment conditions.
Altosoft was a privately held company headquartered in Media, Pennsylvania with approximately 43 employees and contractors principally in the U.S. and Russia.
Q
What was your role within the transaction?
I managed the complete life cycle of the transaction including identifying the strategic need for the technology, defined requirements, evaluating acquisition candidates, negotiating the deal, managing due diligence and building the integration plan.
Q
What were the challenges or difficulties presented
We had limited business intelligence domain expertise within Kofax to evaluate potential acquisition candidates.
Challenges in agreeing valuation with acquisition candidate
Q
How were the challenges or difficulties overcome
We made the decision to engage a boutique consulting firm that could provide us with the domain expertise in the area of Business Intelligence that we needed to properly assess the acquisition target. We also never took no for an answer. We continued to negotiate valuation over
a nine month period and found creative ways to construct a deal including an earn out that shared the risk/reward for both parties based on future performance
Q
How does the transaction fit in with your overall business strategy
The acquired technology is a strategic and foundational component of our smart process applications (SPAs). It allows us to provide more actionable information to our customers sooner than would otherwise be possible. The data and process information may be stored in Kofax software or other applications and repositories, and leveraging it will drive improved decision making.
Q
What are your plans following the transaction
We’ve had quite a bit of experience and success in merging companies and our goal is to continue to build on Altosoft’s presence in the large and growing Business Intelligence market while offering its analytics as an embedded capability in our smart process applications
Q
What are your thoughts and predictions within your sector for 2014 and beyond
We anticipate continued consolidation in the more mature sectors of the software industry as customers choose to deal with fewer strategic vendors.
We think there will be an increasing appetite to acquire technology and businesses in the hot areas of our market sector, which is Mobile, Big Data and Cloud.
www.finance-monthly.com 71
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