Kofax acquires 170 Systems

Kofax plc, a UK-based provider of intelligent capture and exchange solutions, has acquired 170 Systems, Inc. from Polaris Venture Partners for a consideration of $43 million.

170 Systems is a provider business process management solutions for enterprise financial applications, while Polaris Ventures Partners is a venture capital firm. Both 170 Systems and Polaris Ventures Partners are based in the US.

The consideration includes $43 million or net consideration of $32.9 million after deducting $10.1 million of cash held by Kofax. Of the total consideration $29.7 million was paid in cash, $9 million was in the form of a note payable due on September 4, 2010, and $4.3 million in the form of a hold back.

Deal Value (US$ Million) 43
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Completed: 2009-09-07

Deal Participants

Target (Company)   170 Systems, Inc.
Acquirer (Company) Kofax plc (Formerly DICOM Group plc)

Deal Rationale

This acquisition would enable Kofax to strengthen its position in the invoice processing market.

Related terms: acquisition, business, market, note, venture capital