Last week, a leading IDP player, Kofax announced the acquisition of its competitor Ephesoft. This deal comes just a couple of months after the acquisition of Tungsten, that was acquired to strengthen the platform company’s play in the Accounts Payables space. This fact clearly indicates that Kofax will continue to deploy its successful acquisition playbook, even post its buyout by Private Equity firms, Clearlake Capital and TA Associates, from its earlier owner Thoma Bravo.
According to Kofax, the last acquisition will add to Kofax’s intelligent document processing (IDP) solutions and go-to-market channels. With global coverage and cloud solutions, the combined company will provide organizations with value-add solutions to accelerate deployments. Financial terms of the transaction were not disclosed.
In addition to the consolidation play which allows Kofax to further establish its dominance with over 1/3rd of the market share, the Ephesoft acquisition brings with it multiple synergies for Kofax to augment its market positioning and tech capabilities:
Handwritten Text Recognition: Cloud OCR from Ephesoft empowers customers to leverage third-party OCR services, starting with Google Vision, enabling customers to read images that have low fidelity or include handwriting. Ephesoft’s platform already delivers industry-leading 88% accuracy rates for handwriting and cursive recognition.
AI-based Template-free Processing: The Semantik AI Engine of Ephesoft enables data extraction from both known and unknown document types, while the Document Design Accelerator helps manage the creation of custom extraction and classification models, providing more flexibility to customers and enhancing user experience.
Compliance Workloads Focus: The Ephesoft platform comes loaded with compliances such as Federal Risk and Authorization Management Program (FedRAMP) and SOC 2 Type II. Ephesoft Transact Web Scanner is also recertified for user workstations and added to the Air Force Evaluated Product List.
Verticalized Accelerators and Connectors: The Ephesoft platform is equipped with toolkits, accelerators, integrations, and plug-ins that can be leveraged to drive innovative use case solutions and accelerate time-to-value. With built-in integration with Infor Document Management (IDM) Capture, Nintex Workflow Cloud, Workato, and multiple utilities, time to market for custom solutions is greatly reduced.
“We’re pleased to welcome Ephesoft’s customers, partners, and employees into the Kofax family. We’ve followed Ephesoft’s progress in the market for years as we’ve both focused on helping customers digitally transform their businesses. This acquisition extends our IDP solutions and cloud capabilities, allowing Kofax to better address the needs of customers around the world.”Reynolds C. Bish, Chief Executive Officer, Kofax