Hyland Software tops Lexmark bid for Sweden's Readsoft

Reuters News
Posted: Jun 18, 2014 6:57 AM

STOCKHOLM (Reuters) - Business software firm Hyland said on Wednesday it had made a 1.3 billion Swedish crown ($198 million) cash bid for Sweden's Readsoft <RSOFb.ST>, topping a bid from printer maker Lexmark <LXK.N> last month.

Privately held Hyland Software said in a statement it offered 42.86 crowns per share in Readsoft, 7 percent above the 40.05 crowns offered by Lexmark on May 6.

Ohio-based Hyland, which makes software for storing and organizing company documents, said buying Readsoft would boost its product offering and its presence in Europe.

Shares in Readsoft rose by 10.8 percent to 44.20 crowns by 1024 GMT, above the new bid level, indicating market expectations of a continued takeover battle for the Swedish firm which supplies business software for invoicing and processing sales orders.

Readsoft's board recommended shareholders to accept the Lexmark bid, which offered a 118 percent premium, but had not made an announcement over the new bid on Wednesday.

($1 = 6.6415 Swedish Kronas)

(Reporting by Sven Nordenstam; Editing by Alistair Scrutton)