Orange County Business Journal

Kofax Paying Up to $10M for Software Company

Michael Lyster Friday, May 20, 2011

Irvine-based Kofax PLC is paying up to about $10 million to buy a Massachusetts maker of software for viewing documents online.

Kofax is paying $4.7 million in cash at the close of the deal and $800,000 a year from now if Easthampton, Mass.-based Atalasoft Inc. meets expectations.

An additional $4.2 million could be paid in the next two and a half years, based on revenue and operating targets for Atalasoft.

The deal is set to close this month.

Atalasoft makes software used by software developers and technology consultants. The software allows for viewing of documents online.

Customers include companies in healthcare, financial services, law, government, education and manufacturing.

Kofax makes scanning software used by businesses to get rid of paper and speed up productivity.

The software collects paper documents, forms, invoices, e-mails and photos, and organizes them into a searchable database of files.

Customers include government agencies, schools, banks and insurance companies, among others.

Kofax, which got its start in Irvine in 1985, has yearly sales of about $125 million.

The company is publicly traded in Britain, where its holding company parent was based for a time.

Kofax officially moved its headquarters to Irvine—long its operational base—in 2008.

The company is in the process of selling a business that distributes scanners and related devices for about $23 million.

The company is selling the division, which is run out of Germany, to German private equity firm Hannover Finanz GMBH.

The deal is set to close this month.