Optio Software, a provider of technology solutions to improve document handling and management, has entered into an agreement to be acquired by Bottomline Technologies.
The deal was announced last week by Bottomline, which offers solutions and services involving transactional document automation.
Alpharetta, Ga.-based Optio has a variety of healthcare customers through its operational division, Optio Healthcare, which is included in the acquisition. Optio Healthcare has its products used by more than 700 healthcare organizations, and its products include forms automation, document management and electronic health records.
The agreement, valued at $44.9 million, is expected to close during Bottomline's fiscal fourth quarter, pending approval by Optio shareholders. Bottomline is paying $1.85 per share for Optio's stock. The deal has already been approved by both companies' boards of directors.
Bottomline said it expected the deal to result in accretive financial results starting with its fiscal 2009 year.
"We expect the acquisition will have a meaningful impact on our future financial results," said Kevin Donovan, CFO of Bottomline. "With significant recurring revenues of approximately 80 percent and a plan to fully integrate the company, we expect the transaction will produce positive long-term results for our customers and stockholders alike."
Bottomline's product lines primarily serve banking and financial services organizations, and it has offerings in corporate payments, accounts payable automation, legal spend management and document process automation.
"Bottomline and Optio Software share a common vision for how organizations can improve the performance of business critical functions by accelerating the transition from paper- to electronic-based processes," said Wayne Cape, president and CEO of Optio Software.
"We believe the combination of the two organizations, with their complementary solutions, extensive domain expertise and broad customer bases, will create exciting new opportunities for customers seeking to maximize the strategic value associated with the automation and improvement of document-intensive business processes," Cape added.