Bottomline acquires software firm
Portsmouth-based Bottomline Technologies has acquired FormScape Group for $22 million.
The financial software company, with offices in three countries, counts Wal-Mart as one of its customers, Bottomline announced on Monday.
FormScape has offices in the United States, United Kingdom and Germany, which accentuates Bottomline’s recent efforts to expand its markets globally. It also would expand the range of services the company can offer.
FormScape specializes in automating document and financial transactions, while Bottomline has primarily focused on invoice and payment automation software.
In addition to Wal-Mart, FormScape customers include DaimlerChrysler and JVC.
“This is an exciting transaction that we believe will provide Bottomline with both strategic and financial benefits,” said Joe Mullen, Bottomline’s CEO.
Bottomline, which will acquire FormScape for $17 million in cash and $5 million in common stock, estimates that he acquisition will increase revenues by $8.5 or $9 million in fiscal year 2007. The deal would eventually increase earnings per share, but because of stock dilution and other compensation issues, investors would lose out slightly during the next quarter, the company said.
While volume was up, Bottomline’s stock price was unaffected trading after the announcement. – BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW