Consolidation amongst Enterprise Content Management vendors proceeds apace. Following EMC's recent announcement of its acquisition of Documentum, Open Text has announced it is to acquire IXOS in a business combination agreement for approximately 200M Euros.
The acquisition of IXOS puts Open Text firmly on the European map as well as making it the largest, purely software based, enterprise content management vendor. Following the merger the combined company will have approximately 2,000 employees and a total turnover of about $320 Million.
As with all mergers, the key is to look for the synergy between the companies. This merger provides Open Text with a strong European presence and extends Open Text's product range into the records management and archiving arena. This is a critical application area as organisations plan to spend much of their discretionary IT budget in 2004 on dealing with conformance to Sarbanes Oxley and BasleII and other regulatory requirements.
Read the full article