Transactions Acquisition of a Public Software Company by a Public Company Oak Technology wanted to solidify its leadership position in both imaging processing IC's and embedded software for the OEM laser printer and multifunction peripheral markets. Oak was already the imaging processor supplier of choice to eight of the top ten OEMs of digital office equipment worldwide. By acquiring an embedded software developer focused on this vertical market, the company would be in position to extend its leadership in the sector by offering optimized hardware/ software solutions that included the controller ICs and tightly integrated firmware. Oak engaged Intelligent Capital to explore these alternatives and advise on a potential acquisition. Through the process, the leverage of a combination with Xionics Document Technologies became clear. Xionics was a leading developer of software for printing, scanning, copying, processing and transmitting documents to computer peripherals. Oak and Xionics shared many of the same customers, including Hewlett-Packard, Xerox, IBM, Ricoh, GCC, QMS, Seiko Epson and Sharp. Xionics' solutions could also be introduced to Oak customers not already using Xionics' products, including Canon, Fuji, Xerox, and others. More strategically, however, by integrating the product development processes and being in a position to partner with these OEM customers at a higher level, the firms were able to strengthen their overall competitive advantage in the market. Intelligent Capital, Inc. was Oak's exclusive advisor on the acquisition of Xionics Document Technologies.
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