Category: Acquisitions

ECi Software Acquired by Apax Partners

Jeff Hayes
Aug 15, 2017

Apax Partners LLP announced it has agreed to acquire ECi Software Solutions (Fort Worth, TX) a provider of enterprise resource planning software solutions for small and medium-sized companies in the distribution, field services, building and construction, and manufacturing industries. The sellers are The Carlyle Group, a global asset management and private-equity firm which acquired ECi in March of 2014, and Level Equity. No financial terms were disclosed, but clearly the timing and price were right for the sellers.ECi Logo

Apax is a leading private equity firm headquartered in London and New York that primarily invests in companies across four global sectors of Tech and Telco, Services, Healthcare, and Consumer. The company has investments in 23 companies in the Tech and Telco sector including Exact Software (Delft, The Netherlands), a provider of subscription-based shop management, ERP, accounting, and CRM software for small to mid-size manufacturing companies. Read more »

Kyocera Hits the Accelerate Button with DataBank Acquisition

Jeff Hayes
Aug 4, 2017

Kyocera Hits the Accelerate Button with DataBank Acquisition

Synergies that go “Beyond the Document” 

 kyo logo
databank logo

KYOCERA announced they have acquired DataBank IMX, a nation-wide provider of distributed capture and business process automation services and enterprise content management (ECM) solutions.  Specific terms of the deal were not disclosed, but although KYOCERA Document Solutions Inc. acquired DataBank, operationally DataBank will report to KYOCERA Document Solutions America, Inc.  This deal is an important move by Kyocera, which typically has focused on organic growth initiatives, and has the potential to create significant new revenue streams and further strengthen their close relationships with independent office equipment dealers.  After meeting with Norihiko Ina, President of KYOCERA Document Solutions Inc., and Chuck Bauer, CEO of DataBank, I had the opportunity of learning first-hand of this latest industry acquisition.

Some Background:  Kyocera’s Total Document Solutions (TDS) Strategy

During their April 18, 2017 Business Technology Conference, the President and CEO of KYOCERA Document Solutions America, Yukio Ikeda, explained that Kyocera’s alliance with DataBank, announced on 9/13/16, was critical to the next phase in their Total Document Solutions (TDS) strategy. Mr. Ikeda described this next phase as TDS 2.0, offering Business Process Improvement, Business Process Outsourcing and IT Services as expanded Kyocera offerings. In his presentation, he went on to explain that all business processes, not just document-related ones could benefit from these additional services.  He announced that within FY18, their North American dealers would be able to “offer business process improvement services through Kyocera and DataBank’s team of BPI specialists.” This acquisition confirms that Kyocera has executed on this approach by fully incorporating the services provided by DataBank – now a wholly owned entity.

Why DataBank?

DataBank claims to be the single largest North American reseller of Hyland OnBase with over 800 ECM installations across the country. The company offers solutions built on a variety of leading document capture, enterprise content management, and business process automation tools.

Kyocera has been focusing on distributed capture and document management solutions for Hyland OnBase and Microsoft Sharepoint customers in document/workflow intensive industries including healthcare, education, and legal. DataBank enables Kyocera to accelerate and deepen its offerings in these areas, as well as provide additional direct sales and professional services capabilities. A quick thumbnail on DataBank:

  • Founded in 1991 with headquarters in King of Prussia, PA
  • Variety of solutions based on Hyland OnBase and Microsoft Sharepoint
  • Extensive professional services for re-designing complex document and data-intensive business processes and implementing and managing automated and outsourced solutions
  • Over 620 employees across 7 Imaging Centers and 6 sales offices in the U.S.
  • Approximately 65% of revenue from healthcare and public services accounts

Other DataBank technology partners include:

  • Hyland OnBase (DataBank is a platinum reseller in North America)
  • Microsoft Sharepoint
  • Anydoc, AvePoint, DocuSign, Hyperfish, K2 Nintex
  • Leading scanner & mailing system vendors

DataBank solutions also connect with a variety of MFPs from other vendors, and Kyocera has indicated that they will not disrupt the support offered to those customers, but will look to shift customers to Kyocera-based devices and solutions wherever possible.  Kyocera also believes they can more tightly integrate their devices with DataBank solutions as part of future product development.

Why Now?

Kyocera clearly sees solutions as integral to their business strategy and has been impressed with the DataBank management team and offerings. The company is focused on offering customers a new level of consultative expertise in simplifying complex workflows, managing mission-critical information, and optimizing business performance.  Kyocera has also been steadily building out their Total Document Solutions portfolio through internal development and industry partners, with nearly 50 software offerings focusing on distributed capture, data extraction, document management, device management, output management, and security.

Kyocera also has the financial resources to make a mid-sized acquisition, and has not been burdened with integrating previous acquisitions like some competing OEMs. The company has outperformed the industry recently with revenue up 104% over the previous year and has reported 8 consecutive years of growth.  With the steady economy, strong balance sheet, and a good partner in a strategic part of the market, Kyocera believes now is the time to make a move. 

Industry Impact

This acquisition doesn’t change the structure of the industry, but clearly indicates that Kyocera is committed for the long term. Keypoint Intelligence believe this move is important because it:

  • Signals Kyocera’s strategic direction further into the solutions business and enterprise accounts
  • Strengthens Kyocera’s position in important vertical markets (healthcare, government, legal)
  • Significantly expands Kyocera’s professional services capabilities
  • Creates a new services revenue stream around business process automation
  • Provides new opportunities (solutions) and capabilities (integration) for Kyocera dealers
  • Has long-term potential for Kyocera to expand within the U.S. and other regions

InfoTrends’ Opinion

Expansion and contraction has become common place in our industry, with Xerox and Lexmark recently divesting its solutions and service entities, and now with this acquisition by Kyocera – clearly vendors are trying to find ways to better serve the expanding needs of their customers for services that go beyond the document.  Acquisition is one way to accomplish this, and this recent course taken by Kyocera and DataBank, which began as a partnership a year ago, may have been a prudent one that could work to their mutual benefit.  During this past year, both companies have had a chance to familiarize themselves with their respective product and solution portfolios, as well as their corporate cultures. It is also likely that their sales channels have had a chance to work closely together, aligning resources and finding ways to combine forces to better serve their customers.  With this acquisition, it is anticipated that Kyocera will be able to continue on the path in offering expanded technologies and services to their customers, and realize phase 2.0 of their Total Document Solutions strategy.

Thoma Bravo buys Lexmark Enterprise Software

Steve Pearl
May 11, 2017

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“So…what do you think about Hyland’s purchase of Kofax”?  That’s how conversations in the past few days usually start out. Which then lead to explanations of who Thoma Bravo is.  Some background and perspective is clearly in order…

The Facts

Hyland Software’s majority owner, Thoma Bravo, one of the largest private equity firms in the SW industry, announced a definitive agreement on May 3rd to buy Lexmark Enterprise Software (LES), consisting of Kofax, ReadSoft and Perceptive Software, for a reported amount of $1.5 billion. Read more »

Dover Corporation rounding up portfolio of digital printing technologies

Ron Gilboa
Apr 12, 2017

Last week Dover [NYSE:DOV] bought Caldera for 35 million euros. This acquisition is the third such recent move for Dover and expands their digital print capabilities to include color management, web-to-print, production workflow and automation.

Dover corp

Dover Corporation was a $6.8 Billion company in 2016, with global holdings served by almost 29,000 employees. The company’s holdings are in four key areas: energy, engineering systems, fluids, and refrigeration & food equipment. Over the past few years Dover has set its sights on the digital printing market and its related growth opportunities. This strategy has resulted in several acquisitions of which Caldera is the latest one. Preceding this acquisition Dover acquired MS Printing, a manufacturer of textile printing solutions in February of 2014) and followed this with the acquisition of JK Group, a manufacturer of inks for the textile industry, in October of 2015. These acquisitions of inkjet printing and inks companies were key to developing a value chain in digital printing, but one aspect was missing;  workflow. The Caldera acquisition helps round out the solution set.

Calder aLogo

Caldera, under the leadership of CEO Joseph Mergui, has been developing digital front-end solutions for wide format printing for over 25 years. Caldera provides a high-end color management, production management tools, web-to-print, automation and connectivity to most wide format type printers in this industry segment.

Over the past few years the Caldera team has focused on the demands of the sign & display industry and has begun to embed tools for advanced workflow solutions beyond simple RIPping and color management. The company has added job management, accounting, and production dashboards that allow print service providers to evaluate their production environment from job timing to ink consumption. Caldera also has begun to add solutions for emerging opportunities in industrial print segments and now offers solutions for textile printers and mixed environments for digital displays are in use side by side with printed output.

This acquisition will benefit both companies. Dover now has a workflow solution that integrates well with its existing assets, and through Caldera’s industry network they gain access to other markets. Caldera now benefits from the strength and market development capabilities of a large organization that sees digital printing in the graphics, industrial, and decorative markets as strategically important for future growth.

This acquisition is reminiscent of several others in this space, most recently that of AVT by Danaher, as well as that of Reggiani and Optitex by EFI.  A generation of innovative, smaller companies, are uniting with larger organizations for growth in digital printing and related areas. We expect these mergers and acquisitions to continue as industrial markets turn to digital printing as a mean to address end user demand for mass customized products.

HP Inc. to buy Samsung Electronics’ Printer Business

Anne Valaitis
Sep 12, 2016

SamsungHP

 

 

 

 

 

HP Inc. announced today they are set to buy Samsung’s printer business for a reported $1.05 billion. HP Inc. went public with a number of announcements today during their Global Partner Conference in Boston, Ma continuing for the next few days. As part of the Samsung announcement, HP is set to gain about 6,000 Samsung employees once the deal is finalized. HP sets its expectation to close within 12 months (according to Enrique Lores HP, president of imaging and printing). Of the 6,000 employees, approximately 2,000 are research and development engineers, 1,000 are sales and support staff and the remaining are in service and manufacturing, Lores said. As of this writing, Samsung has not shared the revenue that had been generated from their printing business.

Read more »

Cefla Finishing Acquires a Majority Stake in JetSet Industrial

Ron Gilboa
Aug 4, 2016

Today, Cefla Finishing group announced that it had acquired a majority stake (60%) in JetSet Industrial S.r.l., a manufacturer and integrator of inkjet printing systems for a range of applications and industries. JetSet Industrial’s move into inkjet printing started in 2012 in Bergamo, Italy, which is also home of several other inkjet equipment suppliers.

Still a start-up in many ways, JetSet is a bespoke supplier of decorative printing systems for ceramic, glass, textiles, and woodworking materials. JetSet has the skill set to integrated technology as well as develop materials in support of their printing technologies. This makes the company a turn-key supplier to its customers. According to Hoovers.com, the company has eleven employees and generated $2.15 million in revenues in the past year. JetSet has also invested heavily in their core capabilities for inkjet system integration.

JetSet Wave Integrated Color Single-Pass Print Head Module

JetSet Wave Integrated Color Single-Pass Print Head Module

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HP Inc. Divests Software Assets

Brendan Morse
Apr 22, 2016

On Monday, Open Text announced it has entered into a definitive agreement to acquire most of HP Inc.’s Engage software portfolio for $170 million. However, HP made only the briefest of statements on the sale and the announcement was not even posted on the central HP news webpage.

Hp software

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Lexmark Acquired by Apex

Allison Correia and Brendan Morse
Apr 21, 2016

Lexmark logo

Back in October 2015, Lexmark announced plans to explore strategic alternatives for its business which many took to mean they were exploring a major move like splitting the company in separate two entities, selling a significant portion of the company, or to sell the entire company as-is.   Six months later, Lexmark announced on April 19, 2016 that it entered into a definitive merger agreement with a consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG), under which Lexmark will be acquired for $40.50 per share, representing a 30% premium to the price back in October (the day before Lexmark announced they were exploring strategic alternatives). This makes for all-cash transaction value of approximately $3.6 billion, net of cash. Read more »

Focus on Change and Opportunities at ITEX 2016

Barbara Richards and Brendan Morse
Mar 13, 2016

Waves of Change, Oceans of Opportunity
On March 7th through the 9th industry leaders, exhibitors and dealers gathered in sunny Ft. Lauderdale, Florida at the Broward County Convention Center for the ITEX 2016 National Conference and Expo. The show’s theme “Waves of Change, Oceans of Opportunity” was indicative of the expanded role of portfolio diversification and business operations transformation is playing within our industry. ITEX 2016 Pic

Read more »

Xerox Pushes the Reset Button

Jeff Hayes
Jan 29, 2016

Making a big transformative acquisition is kind of like going to war – it’s expensive and risky and doesn’t always work out like the planners envisioned. CEO Ursula Burns announced that Xerox is retreating from its strategy to transform into a single growth-oriented, business process outsourcing (BPO) and technology company. Xerox LogoXerox intends to create two separate public companies – one focused on BPO and the other focused on Document Technology and Outsourcing – effectively undoing its $6.4B acquisition in 2010 of Affiliated Computer Services (ACS).

Much of Xerox’s vaunted technology never really gave ACS a big cost or innovation advantage over other BPO companies, and ACS never seemed to get much lift from accessing the Xerox customer base, especially outside the US.

Meanwhile the Document Technology business always seemed to get the short end of the stick. R&D budgets were cut, the growing managed print services business was moved over to the Services side of the house (at least for financial reporting purposes), and much of its cash flow was used to fund share repurchases, debt payment, and add-on acquisitions for the Services business. Xerox R&D Spending Read more »

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