DERRY-BASED software provider Singularity has been acquired by California-headquartered Kofax in a deal worth a potential $48.1 million (€35.9 million).
Singularity, a privately held company established by Northern Ireland-born Pádraig Canavan, employs more than 215 people in Derry, Belfast, London and Hyderabad, India.
Mr Canavan, who set up the company in 1994, was the majority shareholder and has joined Kofax as a senior vice-president.
He said Kofax was a “natural fit” for Singularity and the US group’s “direct sales force, large channel of value-added resellers and global reach” would expand Singularity’s access to the global market significantly.
The Derry company specialises in business process management software. Latest financial statements for the year to September 30th, 2011, show it had revenues of $16.1 million, an adjusted earnings before interest, taxes, depreciation and amortisation of $1 million, and gross assets of $18.2 million with no material debt.
Mr Canavan said he and everyone who worked for Singularity remained “fully committed to our future success”.
Under the terms of the deal Kofax has acquired all of Singularity’s stock for a total consideration of up to $48.1 million in cash.
A total of $30.3 million was paid on the closing of the transaction and $3.3 million will be paid in a year’s time subject to certain indemnification terms and conditions.
Kofax has also outlined that additional payments of up to $14.5 million may be made one and two years after the closing of the deal, subject to the achievement of annual targets and certain management employment conditions.
The Californian group said the acquisition of Singularity would allow it to “realise numerous strategic benefits”. Kofax chief executive Reynolds Bish said he expected the Derry company to “add approximately $8 million of revenue”.
