ECM vendor Hyland Software has upped its offer for enterprise capture software leader ReadSoft increase, meanwhile announcing an expanded Australian presence and the purchase of local solution provider CAYLX Software for an undisclosed sum.

Lexmark subsidiary Perceptive Software and Hyland, creator of the OnBase ECM platform, are engaged in a bidding war to acquire ReadSoft.

Following ReadSoft’s acceptance of Perceptive Software’s initial bid in June, both companies have escalated the amount on offer. Hyland’s latest bid is for SEK 42.86 in cash per share, over $US200 million.

Hyland’s UK subsidiary is undertaking the purchase, and has also obtained leverage via the purchase of almost 8% of all outstanding shares in ReadSoft. Via agreements with shareholders representing another 3.1%, Hyland UK now controls about 10.9 percent of all outstanding shares in ReadSoft.

“We acknowledge Hyland Software’s latest offer for ReadSoft and are evaluating an appropriate response,” Lexmark’s Chairman and CEO Paul Rooke said in a release. 

“We believe that Lexmark is strategically the best home for ReadSoft and its employees.”

This is the first time Lexmark has sought to purchase a publicly traded company, and the first time since Lexmark began acquiring software firms to transition from being a printer company to a document solutions company with its 2010 purchase of Perceptive Software that it has encountered a bidding war.

“Lexmark is evaluating all of its options and will discuss with ReadSoft’s Board of Directors at the appropriate time,” Rooke added in his statement.

In a move to expand its presence in the ANZ marketplace, Hyland recently acquired document management and business process solution provider CAYLX Software

The CAYLX team, now part of Hyland, is focused on expanding the reach and presence of it OnBase ECM solution in Australia in key industry verticals.  The acquisition has allowed Hyland to increase its local presence in terms of highly experienced sales, marketing, service and support personnel.

Hyland says the expansion is due to continued growth in the Australian market for reliable and scalable ECM solutions and cloud hosting capabilities for industries including healthcare, insurance, government, and manufacturing.

“Our Australia expansion is a result of our successful international strategy execution and solidifies our continued investment in the Asia-Pacific region,” said Bill Priemer, President and CEO, Hyland, creator of OnBase.

“With more than 50% of the ECM market outside the U.S., having a critical mass of people on the ground in Australia will allow OnBase to provide better support to our existing customers, channel partners, and technology partners which is a key component to our growth and long-term success. With customers in 69 countries, our experience allows our customers to take control of their organisation’s important business information,” said Ed McQuiston, Vice President Global Sales, Hyland, creator of OnBase.

The Hyland office is located in Sydney.