Kofax plc, a provider of process applications for customer interactions, announced that it has acquired data integration software company Kapow Technologies, Inc.

According to Kofax, Kapow’s software will simplify Kofax’s ability to integrate “smart process applications” with third-party software for import/export purposes as well as data validation. Kofax also believes the move will strengthen the company’s ability to penetrate the electronic content transformation segment of the multichannel capture market, and is complementary to the recent acquisition of Altosoft’s BI and analytics products.

Kapow Katalyst provides near real-time application integration and process automation offering both traditional API level integration capabilities as well as an innovative Synthetic API approach. The resulting data integration modules can then be deployed via Kapow Kapplets, lightweight apps accessible on a self-serviced basis, according to the website.

Forrester Analyst Craig Le Clair commented in a blog post that Kofax is “rightly focused” on the emerging Content Transformation Market, which includes enterprise content integration. “In a sense, this [acquisition] extends cleverly from the Kofax's multi-channel capture market - extending capture to external web sites and social media,” wrote Le Clair, calling the move  “a wise acquisition with many practical applications and a solid book of business.”

“By more quickly creating essential links between an organization’s smart process applications, systems of engagement and systems of record we can speed our time to market with new solutions and customers’ ROIs,” Kofax CEO Reynolds C. Bish said in a statement.

According to the announcement, Kofax has acquired all of Kapow’s stock for total consideration of $47.5 million in cash, prior to deducting approximately $1.4 million of cash held by Kapow on closing of the transaction. Of this amount, $40.4 million was paid on closing. An additional $2.4 million will be paid upon Kofax’s receipt of Kapow’s audited financial statements for its fiscal year ended June 30, 2013, $2.2 million will be paid one year from closing and $2.5 million will be paid two years from closing, with said amounts being subject to certain indemnification terms and conditions.

A March 20, 2013 Gartner report titled “Data Integration Enables Information Capabilities for the 21st Century”, states that the data integration tool market was worth $1.9 billion at the end of 2011, an increase of 15.3 percent from 2010. The report explains, “Data integration remains a strategic priority for many organizations, and this market is showing some of the highest growth rates of any enterprise software market; our projected five-year compound annual growth rate of nearly 9 percent will bring the total to over $2.8 billion in 2016.”

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