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Kofax in $47M Deal for Palo Alto Company

Irvine-based business software maker Kofax PLC bolstered its big data offerings with a $47 million buy of a Palo Alto company that makes data integration software.

Kofax paid cash to acquire all of the stock of Kapow Software, with three smaller payments divvied out over the next two years.

Kapow’s software, which integrates and automates data in near real-time, is used by hundreds of companies, including Deutsche Telekom and Thomson Reuters.

Kofax said the buy should help the company penetrate the data integration market, which is pegged to grow at a 9% annual clip to more than $2.8 billion by 2016, according to Stamford, Conn.-based market tracker Gartner Inc.

Privately-held Kapow posted revenue of $15.9 million in the 12 months through June 30, the end of its fiscal year. It had an adjusted loss of $2.2 million, gross assets of $7.7 million and no material debt.

The company’s 72 employees, including Chief Executive John Yapaola and Stefan Andreasen, founder and chief technology officer, will be retained for the immediate future, Kofax said.

—Chris Casacchia

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