170 Systems

About 170 Systems

In the world of enterprise software, finding a niche and executing is the name of the game. This is the story of 170 Systems, a privately-held company out of Bedford, Massachusetts that did just that. They weren't a household name, but in the world of corporate finance departments, they were a key player. The company, backed by Polaris Venture Partners, developed software to automate financial processes, a critical but often messy part of any large business. Their flagship product, the 170 MarkView Financial Suite, was a workflow solution designed to tackle invoice processing and other accounts payable functions. What made it compelling was its deep integration with the giants of the enterprise resource planning world, SAP and Oracle. This allowed them to sell into a ready-made market of Fortune 500 companies, boasting a client list that included names like Verizon Wireless and Thomson Reuters. They provided a clear return on investment, helping large corporations streamline operations and manage cash flow more effectively. The pivotal event in the 170 Systems journey came in September 2009. Kofax, a larger player in business process automation, saw the strategic value in what 170 Systems had built. Kofax acquired 170 Systems for a total consideration of $43 million, a net of $32.9 million after accounting for cash on hand. The move was a classic strategic acquisition, allowing Kofax to absorb 170 Systems' specialized software and expertise to offer a more complete invoice processing solution to a global market.