The consolidation frenzy in the content-management market continued Tuesday when Canadian collaboration and knowledge-management vendor Open Text Corp. said it would acquire IXOS Software AG, a German supplier of document-imaging and content-archiving software, in a complex deal valued at about $250 million.
The combination of collaboration and content management has become a familiar theme over the past couple of years as vendors in both areas look to secure their futures by forming larger companies. The consolidation wave took on larger proportions last week when Documentum Inc., which had been the biggest independent content-management vendor, agreed to be acquired by storage vendor EMC Corp. for about $1.7 billion.
The move to buy IXOS was necessitated by the evolving marketplace, says David Glazer, Open Text's VP of product management. Enterprise content management has evolved to become an essential software infrastructure component, he says, meaning that companies are reluctant to rely on smaller vendors for something that's becoming an ever-growing enterprise priority. "When you hit that inflection point, the structure of the market needs to change," he says. Additionally, Open Text had begun to veer toward content management under pressure from customers, causing it to recently acquire a smaller content-management supplier, Gauss Interprise AG, which will be folded into IXOS to form Open Text's European content-management division.
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