Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, has agreed to acquire Allegient Systems, a provider of advanced capabilities for legal e-billing, bill review and analytics.
Allegient's proprietary Software as a Service (SaaS) platform and value-added turnkey solutions will complement and extend Bottomline's Legal eXchangeTM portfolio, offering the combined customer base of well over 100 leading insurers unparalleled capabilities to effectively manage their legal expenses.
"This is a natural fit, and we believe the combination of Allegient's offerings and strong domain expertise in insurance, together with Bottomline's existing capabilities, will allow us to provide the most compelling offering in the industry to our combined customers," said Rob Eberle, president and CEO of Bottomline Technologies. "We look forward to welcoming Allegient's talented employees and are excited about John Kelly joining our senior team. His wealth of experience and knowledge of the space will help drive the continued success of our legal spend management business."
"The Allegient team is excited to join Bottomline," said John Kelly, CEO of Allegient Systems. "We believe this combination of complementary offerings will create exciting new opportunities for our customers and accelerate our delivery of innovative solutions."
"In addition to the strategic benefits, we expect the acquisition will positively impact Bottomline's financial results," said Kevin Donovan, CFO of Bottomline Technologies. "The acquisition of Allegient expands Bottomline's portfolio of SaaS solutions and will drive profitable subscription and transaction revenue growth."
The all-cash transaction, valued at $48 million subject to closing balance sheet adjustments, is expected to close on April 1st and be immediately accretive to core net income. Additional financial details of the transaction will be provided on Bottomline's third quarter fiscal year 2011 earnings conference call.