Workflow automation software provider Tungsten Automation could explore an exit in 2027 as buyers gain greater clarity on the sector’s winners and losers, according to CEO Peter Hantman.

By that time, the Clearlake Capital and TA Associates-backed company will have also advanced its transition from perpetual licensing to software-as-a-service and gained expected traction from several new products currently in development, Hantman said.

Denver-based Tungsten would most likely exit through a sale to another private equity sponsor or a large software company, the CEO noted.

There currently are no set plans to launch a process, and Tungsten is not working with any advisors, he said.

Tungsten generates between USD 500m and USD 1bn in revenue, with 90% recurring, according to Hantman. Annual recurring revenue is growing at a low double-digit rate, he said.

The company is “highly profitable,” Hantman added, operating above the Rule of 50, exceeding the software industry’s Rule of 40 benchmark, which measures the combined total of revenue growth and profit margin.

Clearlake and TA acquired Tungsten in July 2022 and retain a combined majority ownership stake, Hantman said.

Tungsten develops artificial intelligence (AI)-powered software that helps large enterprises automate document-heavy business processes, including data capture, accounts payable and invoice processing, print management, and PDF and e-signature workflows. The company also operates Tungsten Network, a global B2B e-invoicing network connecting buyers and suppliers.

The company plans to launch an AI-powered payment execution product next quarter, Hantman said.

Tungsten was founded in 1985 as Kofax Image Products before shortening to Kofax and then Tungsten Automation in 2024. The company has completed around 18 acquisitions, most recently acquiring intelligent document processing software provider Ephesoft in 2022. That same year, it purchased UK-based e-invoicing network Tungsten Network for GBP 53.7m

The business continues to opportunistically evaluate both small and large acquisition opportunities globally. Potential targets would focus on the highly fragmented accounts payable automation market or help expand Tungsten’s capabilities around “converting unstructured information into actionable knowledge,” Hantman said.

Founded in 1985, Tungsten serves more than 25,000 customers, including nearly half of the Fortune 500 and Global 2000, as well as mid-market organizations. Customers span financial services, healthcare, insurance, government, manufacturing, and logistics. The company employs approximately 2,200 people.

More than half of Tungsten’s revenue is generated outside North America, primarily in Western Europe and Asia-Pacific, according to Hantman.

In Gartner’s inaugural 2025 Magic Quadrant for Intelligent Document Processing Solutions, Tungsten was named a Leader alongside Infrrd, UiPath, Abbyy, and Hyperscience. Other sector players include Automation Anywhere, Pegasystems, OpenText, Hyland Software, Adobe, and DocuSign, Hantman said.

Recent sector transactions include ServiceNow’s approximately USD 2.85bn acquisition of Moveworks and OpenText’s sale of its eDOCS division to NetDocuments for USD 163m in 2025.

Mergermarket sister publication Debtwire reported last month that Tungsten’s lenders had retained counsel ahead of upcoming debt maturities totaling around USD 150m, citing sources. For this report, Hantman described the process as “standard fare” and said the company’s financial profile makes it a strong borrower.

Hantman joined Tungsten in 2023 as president and COO before being promoted to CEO in July 2025. Previously, he served as CFO of supply chain software provider E2open and CEO of Bankers Title Company, and held leadership roles at IQNavigator, TeleTech, and Alpine Access.