Adaptive Solutions to purchase Kodak OCR business

Work Process Improvement Today, Dec 1997

In a major step toward its goal of becoming a leader provider of complete Computer Assisted Data Entry solutions, Adaptive Solutions Inc. (NASDAQ: ADSO) announced that it has agreed to purchase Eastman Kodak Company's optical character recognition (OCR) business.

The purchase includes ownership of Kodak's Imagelinkbranded OCR subsystems, technology and related patents, as well as the OCR service business. In addition, Adaptive is acquiring next-generation intelligent character recognition (ICR) technology and patents developed by Kodak that have been field tested but not yet commercialized.

Under the terms of the agreement, Adaptive will pay approximately $1 million in stock and cash in addition to future royalties.

The OCR subsystem is a selfcontained, modular subsystem that can be installed in new or existing Kodak scanners and microimagers. The optional subsystem enables companies to accurately recognize and capture information contained on forms and other data sources, converting the information into computer processable codes and automatically entering it into company-wide database.

As part of the agreement, Kodak will continue to provide on-site maintenance and repair to current and new OCR customers under contract as a third-party maintenance provider for Adaptive Solutions, Inc. In addition, Adaptive will become an authorized imaging reseller for the Kodak line of scanners and microimagers and other Kodak imaging products. As a result, Adaptive will be able to service and support current Kodak OCR customers, while developing OCR and forms processing enhancements and upgrades that are expected to be available in the near future.