Clearlake & TA X Kofax

Kofax, an intelligent automation software provider, announced last month that it has entered into a definitive agreement to be acquired by Clearlake Capital Group and TA Associates. The seller, Thoma Bravo, is a well-known software investment firm which has recently announced its acquisition of Sailpoint for $6.9bn. In 2017, Thoma Bravo acquired Kofax through its purchase of Lexmark International Inc.’s enterprise-software business. As part of the deal, Thoma Bravo combined Kofax and ReadSoft. In November 2021, the private equity firm led by Orlando Bravo announced its intention to sell Kofax for potentially $3bn including debt.

?Kofax has a platform that offers business intelligence and analytic software services, bringing together data and process management systems so that businesses can respond to customers at the earliest and gain a competitive advantage in customer service. With more than 25,000 customers worldwide, Kofax is constantly improving its backend technology enabled by multiple successful acquisitions. It is headquartered in Irvine, CA and has close to 2,000 employees globally.

?The deal is expected to close in the third quarter of this year, pending customary conditions such as regulatory approval. J.P. Morgan, Credit Suisse, Arma Partners and Jefferies are the buyside advisors, while Lazard is serving Thoma Bravo, with Kirkland & Ellis providing legal counsel to both sides. The financial terms of the transaction were not disclosed at the time of reporting, but the target deal amount mentioned earlier should provide a ballpark figure. It is important to note that this acquisition symbolizes a change in ownership, but not management or strategy. It is likely that the deal progressed given that both Clearlake and TA Associates are aligned with Kofax’s mission, vision and strategy. “Clearlake and TA offer industry knowledge and experience scaling enterprise software companies like ours,” said Reynolds C. Bish, CEO of Kofax. “We are proud of what we have achieved with Thoma Bravo’s support and are thrilled to enter the next phase of our journey in partnership with Clearlake, TA and our incredible Kofax team.”?