Accel-KKR's Kana in Cross-Border Deal
Accel-KKR’s software solutions business KANA Software merged with Lagan Technologies. Deal terms were undisclosed.
Lagan’s G2C (government to citizen) technology will be complementary to KANA’s communications, financial services, healthcare, retail and technology segments.
Lagan’s software serves 200 international government agencies at the national, regional and city level.
The merger has the possibility to create 100 new positions at Lagan’s Northern Ireland Belfast headquarters, which will be come KANA’s European headquarters and a channel for international growth. Lagan will also leverage KANA’s North American operations to help strengthen future growth in the US and Canada. The companies will continue its focus on G2C capabilities.
KANA was founded in 1996 as an e-mail management software developer. By 1999 the company went public and acquired software companies Connectify, Business Evolution, and NetDialog. The company, formerly Kana Communications, changed its name in 2001 after it merged with Broadbase Software.
The technology-focused Accel-KKR acquired KANA in December 2009. The firm, through its third fund, shelled out $40.82 million in cash for the assets of the software business. The shell company, meanwhile, remained listed on the OTC and changed its name to SWK Holdings Corp. SWK held onto the net cash proceeds from the sale as well as $400 million of the net operating loss carry-forwards. With the funding, SWK is also targeting acquisition opportunities, although not in Kana's market.
Accel-KKR closed on its third fund in September 2008 with $600 million in committed capital surpassing its $400 million target. It recently sold on-demand supply chain management and intelligence solutions provider iTradeNetwork to Roper Industries for $525 million in July.
The firm currently manages more than $1 billion in assets. It targets technology companies with $15 million to $150 million in revenue that are well positioned for top-line and bottom-line growth. It specializes in buyouts and recapitalizations of family-owned or closely-held private companies, divisional buyouts of larger companies, and going-private transactions.
Accel-KKR and KANA used Arma Partners for their financial advisor on the deal.