ReadSoft acquires Expert Systems and expands its rapidly growing cloud services with a network for exchanging e-invoices and other digital documents
ReadSoft, a global leading supplier of software for document process automation, acquires the privately held Expert Systems Development Svenska AB (Expert Systems), a supplier of SaaS solutions (Software as a Service) for electronic business. Expert Systems has one of the leading cloud based networks for exchanging e-invoices and other electronic documents in Sweden. Expert Systems employs 27 people and their main market is the Nordics.
Background and reasons for the acquisition
ReadSoft offers market leading solutions for Document Process Automation and is the largest vendor for automated invoice processing solutions globally. The ambition is to grow organically and via acquisitions of companies that have complementary technology and distribution power in areas that fits the strategic roadmap of ReadSoft.
ReadSoft already has a leading position in the industry for automated invoice processing both when it comes to on premise installations and via ReadSoft’s cloud based solution ReadSoft Online. The acquisition of Expert Systems means that ReadSoft takes over software with large global potential that will both strengthen and expand ReadSoft’s cloud offering and position as a provider of electronic document solutions.
Expert Systems is an influential supplier of cloud based services for electronic business in the Nordics. The company provides user-friendly and reliable systems for the exchange of e-invoices and other electronic documents in a network for companies and their suppliers. Expert Systems has a wide customer base comprising all types from small businesses to global enterprises, government agencies and municipalities. Expert Systems is an active member of several e-business organizations, both national and international, and contributes within these organizations with their expertise to establish standards and promote e-business.
Expert Systems’ systems and solutions include Exder, the most widely used business system for EDI (Electronic Document Interchange) in the retail sector in Sweden with a share of 70 percent of all article information for customers such as ICA, Coop and Axfood. The Invoice portal simplifies the exchange of electronic invoices and is one of the foremost networks in the Nordics. Expert Systems also supplies systems, among other things, that are used for the handling of electronic invoices within all government agencies, municipalities and counties in Sweden.
“The acquisition of Expert Systems is entirely in line with our acquisition strategy and we acquire a technology that is an excellent complement to our existing cloud-based offering, ReadSoft Online, which also can be connected to our INVOICES-solution installed on premise at our customers, says Per Åkerberg, President and CEO of ReadSoft. “E-business and digital information exchange is a fast growing market with great prospects for the future. We early identified the great demand that exists and will continue to exist when we developed and positioned our leading solution for cloud-based invoice processing, ReadSoft Online. The acquisition of Expert Systems will expand our cloud-based offering and help build recurring revenues creating a solid foundation for increased profitability for ReadSoft. Our joint offering will give our present and future customers a unique value-proposition in combination with our world-leading solutions for document process automation. The acquisition also provides significant opportunities for our strong international sales organization to create up-selling possibilities towards our existing customer base, and we expect to rapidly grow the business”, finishes Per Åkerberg.
“ReadSoft, with its world-leading products and solutions, and its global distribution network, is a perfect fit for Expert Systems”, says Christer Rygaard, CEO of Expert Systems. “I am truly enthusiastic about our new constellation, where Expert Systems will be a strong complement to ReadSoft’s leading invoice automation solution in the cloud, ReadSoft Online. Together we will develop and internationalize a unique concept and a leading solution for handling electronic documents in the cloud, which will benefit our present and future partners and customers”, finishes Christer Rygaard.
Financial effects and acquisition terms
Expert Systems’ revenues for 2012 amounted to approximately 13 MSEK, with a slightly negative EBIT-result. 80 percent of Expert Systems’ revenue is recurring. Expert Systems’ revenue and result have been adapted to ReadSoft’s accounting principles for the financial statements of 2012. This has had a negative impact with approximately 4 MSEK on Expert Systems turnover and result.
The initial purchase price amounts to 40 MSEK, including assumed debts. In addition to the initial purchase price ReadSoft will pay an additional purchase price based on Expert Systems’ operating result EBITDA during the period May 2013 – April 2014. The additional purchase price can amount to a maximum of 20 MSEK.
ReadSoft’s Board of Directors believe that the consideration paid for Expert Systems is balanced and ReadSoft expects a positive contribution to earnings per share and other key numbers already in 2013.
The transaction is expected to be closed in May.
Press/Analyst meeting
ReadSoft’s management will be available for questions and answers on May 7. A telephone conference/audiocast will be held at 10:00 CET.
Call-in details and link to the telephone conference/audiocast:
Link to webcast: click here
Day and time: Tuesday, May 7, 2013 at 10.00 CET
Phone number: +46 8 505 564 81 or +44 203 364 5373
Please call the conference a couple of minutes prior to the specified time to ensure a punctual start to the meeting.
You can also access the presentation via our website www.readsoft.se or www.readsoft.com.
The Board of Directors of ReadSoft AB (publ)
This is information of the type that ReadSoft AB (publ) is obligated to disclose in accordance with the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on May 7, 2013 at 08:00 CET.
For additional information, please contact:
ReadSoft AB
Per Åkerberg, President and CEO
Phone: +46 42 490 21 00
Johan Holmqvist, Vice President, Corporate Communications
Phone: +46 42 490 21 98, alt +46 708 37 66 77
Email: johan.holmqvist@readsoft.com
Jan Bertilsson, CFO
Phone: +46 42 – 490 21 43 alt. +46 708 37 66 16
E-mail: jan.bertilsson@readsoft.com
About ReadSoft
ReadSoft is a leading global provider of software solutions for document process automation in the cloud or on premise. ReadSoft is by far the world’s number one choice for invoice processing automation, especially into business systems from SAP and Oracle. ReadSoft’s software enables companies to automate document processes such as accounts payable processing, and mailroom automation. Since the start in 1991, ReadSoft has grown to a worldwide group with operations in 17 countries on six continents and a network of local and global partners. The head office is located in Helsingborg, Sweden, and the ReadSoft share is traded on the NASDAQ OMX Stockholm's Small Cap list. For more information about ReadSoft, please visit www.readsoft.com
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