Lexmark International has raised its bid for ReadSoft by 16% to more than $US220 million to counter the latest offer from Hyland Software in a tit for tat bidding war.

Lexmark has acquired over 5% of shares in ReadSoft and 3.9 percent of the votes in the Company. Its new bid has been recommended by ReadSoft founders Lars Appelstål and Jan Andersson, who together own more than 65% shareholding.

Post acquisition, ReadSoft is expected to be integrated into Lexmark's Perceptive Software segment which has been strengthened with several acquisitions such as PACSGEAR, Saperion and Brainware to name a few.   

Industry analyst Zacks notes, “Lexmark's interest in ReadSoft is of strategic importance as it will strengthen its position in the European business process management market. Reportedly, Gartner has recognized EMEA to be the second biggest content and process management software market. 

“Moreover, with more than 12,000 customers in diversified sectors and operations in 71 countries, ReadSoft provides Lexmark the perfect footing to expand its business process solutions business. Additionally, the valued clientele including John Deere, BASF and HSBC Bank is another positive.”