Lexmark (LXK) is offering $6.11/share (SEK39.78/share) in cash, or $182M net of cash, to acquire all outstanding shares of Swedish document management software vendor ReadSoft. The price represents nearly a 120% premium to ReadSoft's Monday close in Stockholm. ReadSoft's board backs the offer.
ReadSoft claims 12K+ customers in 70 countries, and had 2013 revenue of $117M - the latter figure implies a fairly low acquisition multiple of 1.56x trailing sales. Clients include Siemens, BASF, HSBC, and Lego.
The company has a product line that includes a number of apps specifically meant to automate the flow of documents for widely-used Oracle/SAP apps. Lexmark says ReadSoft's products will complement its Perceptive Software (content management software) unit,
The purchase is part of Lexmark's ongoing effort to lower its dependence on a slumping printer business in favor of software/services. The company's software/other revenue rose 13% Y/Y in Q1, but still only made up 12% of revenue.