Readsoft buys Foxray. Increasing its AP Automation position. 11 facts

We all know ReadSoft. And didn’t we all thought they are actually are one of leaders (compare to a lot of us that claim this title) in Document and AP automation? Well clearly not. Because today they announced the acquisition of Foxray AG.

About Foxray and its AP automation services

First some info on Foxray:

  • Foxray is situated in Germany
  • It is a developer of Business Process Automation platforms and solutions.
  • Foxray employs 40 people and their main market is Europe. The revenues for 2011 was approximately 7 MEUR and with a positive EBIT-result.
  • The main business of Foxray is to develop and market their software product suite, called: Xbound. Xbound is claimed to be a highly sophisticated Business Process Automation platform.
  • The main market focus of Foxray has been Europe and Foxray has recently expanded in to Asia.
  • Foxray’s specific expertise lies in high volume document production sites for larger organizations such as banks, insurance companies, government, service centers/bureaus and outsourcing companies, but Foxray is also a strong contester for general BPO (Business Process Outsourcing) solutions, especially in high volume areas.

Facts and backgrounds on the acquisition of Foxray

So what did Readsoft pay for Foxray and what are their intentions with Foxray? Well:

The initial purchase price includes assumption of debt and amounts to approximately 7.85 MEUR, whereof an amount of 0.65 MEUR shall be paid with own ReadSoft shares of class B to two of foxray’s founders, Ralf Göbel and Torsten Malchow.
Ralf Göbel and Torsten Malchow  will both remain as employees of Foxray after the acquisition.
In addition to the initial purchase price ReadSoft will pay an additional purchase price based on the sales of the Xbound product during 2012-2014. The additional purchase price can amount to a maximum of 3.3 MEUR. So, we are talking about a 10 million Euro acquisition here.
Xbound will be integrated into the ReadSoft Capture technology stack. The sales and delivery organizations of both companies will be combined. Jointly, it is intended to achieve a substantial leap in technology leadership, to strengthen the competitive power and the global market lead of ReadSoft considerably.
It is also expected that this acquisition enables ReadSoft to draw on a broader base of highly skilled people, increase its sales power and expand the target market into more Business Process Automation related solutions.

Comments from Readsoft and Foxray

This is what Readsoft and Foxray have to say on their acquisition:

  • Per Åkerberg, President and CEO of ReadSoft:“ReadSoft’s strategies state that ReadSoft shall be well positioned with our offering for BPOs, and that we will be active in the consolidation of our market. The acquisition of Foxray is entirely in line with these strategies and we are acquiring a very strong technology and a highly competent company that will complement and extend ReadSoft’s already leading solutions perfectly.”

    “By combining our DOCUMENTS solution with Foxray’s xbound solution we will have a very strong Capture solution securing us a top position going forward. We will also be able to offer our existing customers and prospects an even stronger end-to-end solution that contains the full scope of functionality that they need today and in the future.”
  • Ralf Göbel, CTO and co-leader of Foxray:

    “ReadSoft is a perfect match for Foxray with their leading products and solutions for Document Process Automation. Foxray’s products and solutions strongly complements ReadSoft’s and together our combined solutions and resources will benefit all of our customers.”

  • Torsten Malchow, CSO and co-leader of Foxray:“Foxray chose to become a part of ReadSoft because we see them as the market leader in the industry and by merging with a larger international organization like ReadSoft’s with greater financial resources and extensive global reach we are certain that we will have a joint success for our customers, partners and prospects and last but not least for ourselves.”

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