Business News
Captaris Completes Acquisition of Oce Document Technologies
Tuesday 08. January 2008 - Captaris, Inc. (NASDAQ:CAPA), a leading provider of software products that automate document-centric processes, announced today that it has completed the acquisition of Oce Document Technologies GmbH (ODT), a provider of software and solutions for document capture, text recognition and document classification.
ODT has approximately 180 employees and maintains its global headquarters in Constance, Germany, and its North American office in Bethesda, Maryland. ODT had revenue of approximately EUR 22.7 million (USD $33.3 million) in 2007.
“This is a significant, transformative transaction for our company,” said David P. Anastasi, President and CEO of Captaris. “Our acquisition of ODT significantly increases the scale of our business, our international presence, and the depth of our technology capabilities. It also positions us well to pursue growth in the rapidly evolving distributed capture market. Leading document capture providers have leveraged ODT technology for years to create competitive advantage within their platforms. We intend to continue emphasizing these OEM relationships and believe that through leveraging the technology within Captaris platforms we can reach a considerably broader audience in the fastest growing segments of the capture market.”
“The revenue from the ODT business will diversify our revenue sources,” he added, “with approximately 35% of revenue following the acquisition expected to come from non-fax product lines and approximately 40% expected to come from international operations. We expect our shareholders to benefit from Captaris’ investment in the larger and higher growth document capture market as well as from the growth opportunities in the non-fax and international businesses. In addition to revenue growth from the acquisition, we anticipate achieving organic growth in 2008 from multiple initiatives focused at automating document-centric business processes through leveraging intelligence from captured images. We expect these initiatives to create substantial synergies with leading content management providers.”
Under the terms of the acquisition agreement, Captaris acquired ODT for approximately EUR 10.4 million in cash (USD $15.3 million), net of ODT’s cash balance as of the closing of approximately EUR 21.2 million (USD $31.1 million). Captaris also assumed ODT’s operating and financial liabilities, including approximately EUR 12.1 million (USD $17.8 million) in future retirement and bonus obligations. The purchase price is subject to adjustment following the closing based on ODT’s actual revenue for the year ended November 30, 2007. Captaris expects the acquisition to be accretive to earnings in 2008 excluding non-cash charges related to purchase accounting. ODT will be renamed and will operate under the name Captaris Document Technologies GmbH.