EMC buys Documentum
Published: 14 Oct 2003 13:15 BST
Storage maker EMC announced plans to acquire Documentum, which makes content management software, in a deal valued at $1.7bn, the companies announced on Tuesday.
EMC, which also stated on Tuesday that it would match third-quarter earnings expectations, said it would offer 2.175 shares of its stock for each share of Documentum. That puts almost a 29 percent premium on Documentum's stock, based on the companies' closing prices on Monday.
Th ecompany said it will blend Documentum's software with its storage products to help customers achieve a "total life-cycle management solution" for dealing with content -- spanning from content creation to archiving and disposal.
"Software is central to our strategy of delivering comprehensive information life-cycle management solutions that allow customers to select the appropriate levels of availability, protection and speed of access at every point in the information life cycle, at the lowest total cost," EMC CEO Joe Tucci said in a release.
EMC has been developing its software side as part of its focus on life cycle management, agreeing in July to acquire Legato Systems, a maker of backup and recovery systems, in a stock deal worth $1.3bn.
Tucci said on Tuesday that EMC, Documentum and Legato had a combined total of more than $2bn in software licence and support revenue over the past 12 months.
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