Top tech firm singled out for $48m takeover
A Londonderry technology firm has been acquired by a global software business in a $48m (£30.7m) deal.
Kofax plc yesterday announced the acquisition of Singularity Ltd, which provides business process management software and case management solutions.
There are 215 people currently working for Singularity in Derry and Belfast. The name will go —but its founder and chief executive yesterday confirmed he would remain in situ with a new title.
It’s understood Kofax has held talks with Invest NI about support for plans to increase the size of the Singularity workforce.
Kofax chief executive Reynolds C. Bish said the acquisition would bring Kofax into the business process management market, one which was expected to grow from $2.2bn (£1.4bn) in 2010 to $3.1bn (£2bn) in 2013.
He said: “We’re excited to deliver more capabilities to our customers and welcome the Singularity management team and its employees, customers and partners to Kofax.”
Padraig Canavan (50), founder and chief executive of Singularity, said Kofax was “a natural fit”.
He added: “Kofax’s direct sales force, large channel of value added resellers and global reach will significantly expand our access to the market. I’m very happy to continue as the senior vice president of BPM software sales at Kofax and along with the Singularity team remain fully committed to our future success.”
Enterprise Minister Arlene Foster welcomed the deal.
Kofax said it had acquired all Singularity’s stock for up to $48.1m (£30m). Some $30.3m (£19.5m) has been paid while $3.3m (£2.1m) will be paid in a year’s time subject to terms.
Further payments of $14.5m (£9.3m) may also be paid subject to licence revenue and what Kofax called “certain management employment conditions”.
Singularity’s statements for the year ending September 30 showed revenues of $16.1m (£10.3m).