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Kofax Bought Nuance’s Document Imaging Division for $400 Million: What Happened

Kofax’s 2018 agreement to buy Nuance Document Imaging closed in February 2019. Here’s what the $400 million deal covered and what happened to its products.
From TheFinanceBase Team5 min to read
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Kofax agreed on November 12, 2018, to buy Nuance Communications’ Document Imaging division for $400 million in cash. The deal closed on February 1, 2019. It was the sale of one business division—not an acquisition of Nuance as a whole—and Kofax later became Tungsten Automation.

What Kofax acquired—and when

The agreement named Kofax, Inc. as buyer and Nuance Communications, Inc. as seller. It covered Nuance’s Document Imaging division, with an announced purchase price of $400 million in cash. The companies announced the agreement on November 12, 2018; Kofax announced that the transaction had closed on February 1, 2019. Nuance’s agreement announcement and Kofax’s closing announcement establish the two dates.

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Nuance’s announcement described the expected timing by reference to its fiscal second quarter, while Kofax said it expected to close in the first quarter of 2019. The actual closing date, rather than either forecast, is February 1, 2019.

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What the Document Imaging division did

This was a broad document-software business, not simply a scanner maker. Its products and capabilities covered desktop PDF and document tools, optical character recognition (OCR), enterprise capture, scanning workflows, print management, and document security on multifunction printers (MFPs). The portfolio connected paper documents and office equipment with digital records and business processes.

#1 Best Overall
Sale
Epson Workforce ES-50 Compact & Lightweight Mobile Document Scanner | For Computers including PC and Mac Receipt and Document Scanner USB Powered
  • PORTABLE SCANNER FOR USE ON-THE-GO — The fastest and lightest mobile single-sheet-fed compact document scanner in its class¹
  • QUICK DOCUMENT SCANNING ― This Epson ultra-fast scanner scans a single page as quickly as 5.5 seconds²; Windows and Mac compatible
  • VERSATILE PAPER HANDLING ― Portable scanner scans documents up to 8.5 x 72 in; Also easily digitizes receipts and ID cards to make accounting, bookkeeping, and organizing simpler
  • INTUITIVE, HIGH-SPEED SOFTWARE — Epson ScanSmart Software³ is a smart tool allowing you to easily scan, review, and save; Stay organized easily with the help of this Epson scanner
  • EASY SETUP — USB-powered connect to your computer for quick and simple scanning; No batteries or external power supply required to operate portable document scanner; Standard Connectivity: USB 2.0
Product family Typical role
Power PDF and eCopy PDF Pro Creating, editing, and converting PDF files
OmniPage OCR and conversion of scanned documents into usable digital content
PaperPort Desktop scanning and document organization
eCopy ShareScan and AutoStore Capturing documents from MFPs or other sources and routing them into workflows
Equitrac and SafeCom Print management, accounting, access controls, and secure print processes
Output Manager and related tools Managing document output and enterprise workflows

Tungsten’s legacy Nuance Document Imaging documentation identifies these and other products as part of the former division. That product association helps explain the breadth of the business, but does not mean that every old edition is still sold or supported.

Why Nuance sold it and why Kofax wanted it

Nuance’s stated rationale

Nuance said the divestiture would let it focus more narrowly on conversational AI and cloud-based solutions, simplify its operating structure, and improve its growth profile. It also pointed to opportunities in healthcare and enterprise markets. Those were Nuance’s stated strategic reasons for the sale, not independent proof that the imaging business was underperforming. Nuance discussed its rationale in its closing announcement.

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Brother DS-640 Compact Mobile Document Scanner, (Model: DS640)
  • FAST SPEEDS - Scans color and black and white documents a blazing speed up to 16ppm (1). Color scanning won’t slow you down as the color scan speed is the same as the black and white scan speed.
  • ULTRA COMPACT – At less than 1 foot in length and only about 1. 5lbs in weight you can fit this device virtually anywhere (a bag, a purse, even a pocket).
  • READY WHENEVER YOU ARE – The DS-640 mobile scanner is powered via an included micro USB 3. 0 cable allowing you to use it even where there is no outlet available. Plug it into you PC or laptop and you are ready to scan.
  • WORKS YOUR WAY – Use the Brother free iPrint&Scan desktop app for scanning to multiple “Scan-to” destinations like PC, Network, cloud services, Email and OCR. (2) Supports Windows, Mac and Linux and TWAIN/WIA for PC/ICA for Mac/SANE drivers. (3)
  • OPTIMIZE IMAGES AND TEXT – Automatic color detection/adjustment, image rotation (PC only), bleed through prevention/background removal, text enhancement, color drop to enhance scans. Software suite includes document management and OCR software. (4)

Kofax’s strategic fit

Kofax presented the acquisition as a way to strengthen its intelligent automation and cognitive-capture offerings. The acquired capabilities could extend automation from document intake and OCR to MFP workflows, print environments, and document security. They also gave Kofax more product categories to offer through its existing enterprise relationships. At the time, Kofax described a customer base of more than 20,000 and a network of more than 650 indirect channel partners and integrators; those were announcement-era figures, not current company statistics. Kofax’s closing announcement outlined the company’s view of the deal.

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What the $400 million means financially

The $400 million figure was the announced cash consideration. It should not automatically be treated as the final amount Nuance retained, the enterprise value of the business, or a price-to-revenue valuation. Nuance’s financial statements reflect estimated transaction expenses and closing adjustments, and historical revenue does not by itself show the value or future profitability of the assets sold.

Rank #3
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Epson Workforce ES-400 II High-Speed Color Duplex Desktop Document Scanner | For Computers including PC and Mac with Auto Document Feeder and Image Adjustment Tools
  • FAST DOCUMENT SCANNING — Document scanner with feeder allows you to speed through stacks with a 50-sheet Auto Document Feeder (ADF); Efficient office scanner to help you scan more productively
  • INTUITIVE, HIGH-SPEED SOFTWARE — Quickly scan with this desktop document scanner; Epson ScanSmart Software lets you easily preview scans, email files, upload to the cloud, and more; Plus, automatic file naming saves even more time
  • SEAMLESS INTEGRATION — Easily incorporate your data into most document management software with the included TWAIN driver; Office document scanner integrates seamlessly with business workflows
  • EASY SHARING — Duplex scanner allows you to scan straight to email or popular cloud storage2 services like Dropbox, Evernote, Google Drive, and OneDrive for simple storage and sharing
  • SIMPLE FILE MANAGEMENT — Scanner allows the creation of searchable PDFs with Optical Character Recognition (OCR) and convert scans to editable Word or Excel files effortlessly; Designed for home and office document scanning
Financial measure Reported figure How to read it
Announced purchase price $400 million in cash Transaction announcement figure, November 2018
Nuance Imaging revenue, fiscal 2017 $211.2 million Historical division revenue reported by Nuance
Nuance Imaging revenue, fiscal 2018 $209.4 million Historical division revenue reported by Nuance
Nuance Imaging revenue, fiscal 2019 $67.4 million Revenue before the February 1, 2019 sale; fiscal-year figure is not a full year of ownership
Gain recorded by Nuance Approximately $102.4 million Gain in discontinued operations reported in Nuance’s fiscal 2019 filing
Cash proceeds after estimated expenses Approximately $400 million in Nuance’s fiscal 2019 filing; approximately $404 million in a later filing Different disclosures reflecting estimates and later closing-accounting detail, not a replacement for the announced price

The revenue, gain, and proceeds figures come from Nuance’s fiscal 2019 Form 10-K and fiscal 2021 Form 10-K. The filings report accounting measures; they do not make the announced price directly comparable to revenue without further information about the assets, liabilities, and transaction adjustments.

What changed for customers after the sale

The corporate name above the products changed again after the acquisition: Kofax became Tungsten Automation on January 16, 2024. Tungsten’s announcement describes the rebrand as an evolution from document capture toward broader intelligent workflow automation. Tungsten’s rebrand announcement is the current corporate context for former Kofax customers.

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Canon Canoscan Lide 300 Scanner (PDF, AUTOSCAN, Copy, Send)
  • Scanner type: Document
  • Connectivity technology: USB
  • With Auto Scan Mode, the scanner automatically detects what you're scanning
  • Digitize documents and images

Some product lines remain represented in Tungsten’s current documentation, including eCopy ShareScan, Equitrac, OmniPage Server, PaperPort, Power PDF, SafeCom, and Output Manager. The current documentation index lists product materials, while the separate legacy portal preserves Nuance-era documentation. Documentation availability alone does not establish support, sales status, or compatibility for every historical version.

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  • Identify the exact product, edition, and version you own; Nuance-, Kofax-, and Tungsten-branded editions may have different installers, licensing terms, or support status.
  • Check the current vendor documentation for operating-system, scanner, MFP, and integration compatibility before upgrading.
  • For Power PDF, confirm whether an older Nuance installation must be removed or handled specially before installing a newer Tungsten release; vendor materials warn that legacy installations can affect upgrades.
  • For enterprise tools such as Equitrac or eCopy ShareScan, assess the surrounding print infrastructure, authentication, MFP fleet, and integrations—not just the product name.
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How to evaluate the products today

The old division’s catalog spans different jobs. A PDF editor is not a substitute for enterprise print governance, and OCR is not the same as capturing and routing documents from a fleet of MFPs. Start with the workflow that needs improvement, then compare products in that category.

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ScanSnap iX2500 Wireless or USB High-Speed Document Scanner, Black | Cloud Enabled | Photos & Receipts | Large Touchscreen | 100 page Auto Document Feeder | Mac or PC
  • OUR MOST ADVANCED SCANSNAP. Large touchscreen, fast 45ppm double-sided scanning, 100-sheet document feeder, Wi-Fi and USB connectivity, automatic optimizations, and support for cloud services. Upgraded replacement for the discontinued iX1600
  • CUSTOMIZABLE. SHARABLE. Select personalized profiles from the touchscreen. Send to PC, Mac, mobile devices, and clouds. QUICK MENU lets you quickly scan-drag-drop to your favorite computer apps
  • STABLE WIRELESS OR USB CONNECTION. Built-in Wi-Fi 6 for the fastest and most secure scanning. Connect to smart devices or cloud services without a computer. USB-C connection also available
  • PHOTO AND DOCUMENT ORGANIZATION MADE EFFORTLESS. Easily manage, edit, and use scanned data from documents, receipts, photos, and business cards. Automatically optimize, name, and sort files
  • AVOIDS PAPER JAMS AND DAMAGE. Features a brake roller system to feed paper smoothly, a multi-feed sensor that detects pages stuck together, and skew detection to prevent paper damage and data loss
  • PDF editing: Power PDF is the former Nuance line to examine for desktop PDF creation, editing, conversion, and related tasks. Compare it with Adobe Acrobat, Foxit PDF Editor, and Nitro PDF Pro for the features, administration, and licensing your organization needs. Adobe emphasizes its wider cloud and product ecosystem; the alternatives have their own editions and business terms, so compare current offers rather than assuming a universal price advantage.
  • OCR and conversion: OmniPage is aimed at more specialized OCR and document conversion. Tungsten notes that Power PDF also includes OCR, so occasional recognition may not require a separate OCR product. Edition matters: Tungsten says OmniPage Standard 18.0 is not compatible with Windows 11 and directs Windows 11 users toward OmniPage Ultimate 19.2. See the vendor’s OmniPage Standard compatibility information.
  • Desktop scanning and filing: PaperPort is a desktop organization and scanning product; it is not the same category as a centralized, multi-user records or cloud document-management platform.
  • MFP capture and routing: eCopy ShareScan is relevant where employees scan at multifunction devices and route documents into email, repositories, or business workflows.
  • Managed print: Equitrac and SafeCom suit organizations that need controls such as print accounting, access management, or secure release across a managed fleet. They are not alternatives to a standalone PDF editor.

For any of these products, check the version, regional availability, support terms, license type, and deployment requirements directly with Tungsten or the relevant reseller. A current product page or documentation entry is not a guarantee that a particular legacy edition remains available.

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