SOURCE: Top Image Systems Ltd.

July 09, 2007 05:00 ET

TIS's Strategic Penetration Into China: TIS to Acquire Asiasoft, a Leading Electronic Data Management (EDM) Developer and Solution Provider in China and Asia Pacific

TIS to Purchase 51% of Asiasoft, Penetrating the Chinese and Asia-Pacific Markets; TIS Will Become the Largest EDM Technology Provider in APAC, the Fastest Growing Imaging Market; Acquisition Will Be Accretive From the Start and Will Take TIS's Revenue Run-Rate to Over $30 Million; TIS to Hold Conference Call to Discuss Acquisition at 10am on July 9th, 2007

TEL AVIV, ISRAEL--(Marketwire - July 9, 2007) - Top Image Systems Ltd. (NASDAQ: TISA) (TELAVIV: TISA), the leading innovator of data capture solutions, announced that it has completed the first step in the acquisition of Asiasoft Global Pte. Ltd. (ASG), by acquiring 51 percent of its share capital. This is TIS's second acquisition this year and is in line with the management's business goals to become a global document capture market leader, and achieve a revenue run-rate of over US$30 million in 2007.

ASG is a leading developer and distributor of Document Capture, Content Management and Shared Services software solutions throughout China and Asia Pacific. In the first half of the year, ASG generated revenues in excess of US$4 million primarily in China. The acquisition will be accretive from the start, contributing both revenue and net income.

The total price for the initial 51 percent of ASG is approximately $1.8 million. TIS retains the option to purchase the balance based on ASG's performance, for up to about $2 million, within the next 18 months.

The acquisition of ASG, which has over 300 customers and 150 employees across China, Singapore, Hong Kong and Malaysia, provides TIS with a comprehensive and established infrastructure in the region. It positions TIS as one of the strongest players in the region, by extending its solution sales offering, providing a complete imaging platform. TIS intends to use its new base in Asia for aggressive cross-selling activity as well as expansion into new territories.

"We are very excited with this transaction. We believe that Asiasoft, through its strong presence in both South and Northern China, will serve as TIS's base of operations in Asia, including R&D, sales and professional services. Led by Greater China, the Asian market is enjoying growth of over 20% year on year," commented Mr. Alex Toh Kian Hong, Managing Director of Asiasoft. "With TIS's strong presence in Japan, Australia, and India, the merged organization will continue to grow the business. This, while delivering a cohesive Information Lifecycle Management offering and supporting our channel partners and customers alike."

"Both of our recent acquisition of Capture Projects Ltd. and the ASG acquisition are significant steps in our strategic plan to become the Document Capture market leader. Along with our organic growth, these acquisitions will enable us to increase our revenue by approximately 50% in 2007. We are confident in our ability to successfully integrate these two acquisitions, while maintaining and growing our profitability levels," commented Dr. Ido Schechter, CEO of TIS. "Asiasoft has established a strong customer base across the region, the fastest growing imaging market in the world. Through this acquisition, TIS will be able to leverage regional opportunities. By joining forces with the knowledgeable and highly experienced Asiasoft team, we will significantly increase our presence in the region, establishing TIS as a true global solutions provider. Asiasoft's strong research and development team will greatly support our relentless efforts to maintain the technological leadership and meet customers' complex needs."

Conference Call

The management of TIS and Asiasoft will be hosting a conference call for investors, today at 10:00am EDT. On the call, management will discuss the acquisition and will be available to answer questions.

To access the conference call, please dial one of the following numbers. If you cannot access the call through the free phone numbers, then please use the international number:

US: 1 888 281 1167
UK: 0 800 917 5108
Israel: 03 918 0609
International: +972 3 918 0609
The call will be archived on TIS's website for a period of 90 days following the call.

About Asiasoft

ASG, incorporated in Singapore in 1986, is one of the leading private providers of information management solutions for major companies in industries such as finance, logistics, manufacturing, government, and telecommunications among others. Its business is structured on areas of focus in shared services solution, information management solution, access infrastructure, security solutions, business intelligence and enterprise resource planning. It has facilities in Singapore, Shanghai, Guangzhou and Hong Kong and a strong team of management and employees.

Asiasoft's clientele includes global enterprises from the banking, finance, government, healthcare and manufacturing industries, with the likes of Standard Chartered Bank, Bank Of Communications (China), Bank Of East Asia, Citic Ka Wah Bank, Hong Kong Polytechnic University, Monetary Authorities Of Singapore, ABB Industry China, National Health Group, to name a few. Its premier positioning includes strategic partnerships with global players such as Kodak, Fuji Xerox, Sharp, Minolta and IBM across the region.

Notable recent developments from Asiasoft include Aware S3 Shared Services Solution, a technological framework catered for Enterprise Shared Services Centers and Business Process Outsourcing providers. Leveraging leading edge technologies from Microsoft, including Microsoft's .NET2.0, AJAX, Workflow and Communications Foundation, Aware S3 covers the lifecycle of a physical document from digitization, data extraction, business process, content management to search and retrieval. Since its launch in August 2006, Aware S3 has enjoyed much success in China and Singapore, securing several wins with global enterprises. Not stopping with its successes, Asiasoft has commenced on Phase 2 of its development in October 2006, following its successful R&D grant application and approval by the Information Development Authorities of Singapore, to develop a new version of Aware S3 with new and enhanced features including Intelligent Document Recognition, classification, robust workflows, as well as advanced analytics.

Major recent accreditations for ASG include Citrix Best Value Partner in the Asia Pacific, Award of Excellence for Best Overall Achievement ASEAN 2006, and the 1st Platinum Partner in ASEAN in 2007. Asiasoft was awarded Microsoft ISV Partner of the Year in 2006, as well.

About Top Image Systems

Top Image Systems is a leading innovator of enterprise solutions for managing and validating content entering organizations from various sources. Whether originating from mobile, electronic, paper or other sources, TIS solutions deliver the content to applications that drive the organization. TIS's eFLOW Unified Content Platform is a common platform for the company's solutions. TIS markets its platform in more than 30 countries through a multi-tier network of distributors, system integrators, value added resellers as well as strategic partners. Visit the company's website www.TopImageSystems.com for more information.

Caution Concerning Forward-Looking Statements

Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly statements regarding future operating or financial performance. Words such as "will," "expects," "anticipates," "estimates," "intends," "believes," "plans" and words and terms of similar substance in connection with any discussion of future operating or financial performance identify forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of TIS and its competitors, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, quarterly fluctuations in sales of products in the Data Capture market (where in general the fourth quarter is the strongest and the first quarter is the weakest), TIS's ability to successfully integrate businesses it acquires, litigation (including litigation over intellectual property rights), general economic conditions and other risk factors detailed in the Company's most recent annual report on Form 20-F and other subsequent filings with the United States Securities and Exchange Commission. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    Top Image Systems Ltd.
    Adi Bar-Lev
    Director of Marketing and IR
    +972 545 330537
    Email Contact