Thoma Bravo has agreed to buy Lexmark International's enterprise software unit. The target consists of the Kofax, Readsoft and Perceptive Software businesses. Apex Technology Co., PAG Asia Capital and Legend Capital Management took printer maker Lexmark private in 2016.
After the deal closes, Perceptive Software will be added to Hyland Software, while Kofax and Readsoft will operate independently under the Kofax brand. Hyland has been backed by Thoma Bravo since 2007. Financial terms of the deal were not disclosed.
Kofax develops software that helps businesses improve process times. Perceptive Software helps companies organize and manage documents and information, while ReadSoft assists with invoice management.
Private equity firms have been increaslingly showing interest in enterprise software businesses because of consistent subscription revenue streams. Earlier in 2017, Thoma Bravo took a minority stake in cybersecurity company McAfee.
San Francisco-based Thoma Bravo is betting big on software services, as companies are looking to migrate to the cloud and tech companies have steadily grown attractive to dealmakers. The San Francisco-based private equity firm has made more than 140 acquisitions in the software and technology space since 2003. Thoma Bravo closed a new tech fund in September at nearly $7.6 billion to focus on new industry opportunities. The firm recently bought parking management provider T2 Systems using capital from the $1 billion Discover Fund that closed in early 2016; acquired secure access software provider Bomgar; purchased Elemica, a software maker for supply chain operating networks; and completed its acquisition of Qlik Technologies Inc. Thoma Bravo won Mergers & Acquisitions’ 2014 M&A Mid-Market Award for Deal of the Year for the firm's purchase of TravelClick.
Lazard (NYSE: LAZ) and Dechert LLP are advising Lexmark International. Credit Suisse, Goldman, Sachs & Co. (NYSE: GS) and Kirkland & Ellis LLP are advising Thoma Bravo and Hyland. Credit Suisse, Goldman, Sachs and UBS Investment Bank are providing financing.