IBM to purchase FileNet
As part of its Information on Demand initiative, which was formally launched in February, IBM has announced definitive agreement to acquire content and business process management provider FileNet in an all-cash transaction at a price of approximately $1.6 billion, or $35 per share. The acquisition is subject to FileNet shareholder approval, regulatory reviews and other customary closing conditions. It is expected to close in the fourth quarter of 2006.
IBM says its Information on Demand strategy is designed to provide its clients with information precisely when and how they need it to improve their business processes, respond to market needs and identify new business opportunities.
Following completion of the acquisition, IBM says it intends to:
- combine FileNet's operations with IBM's Content Management business in the Information Management unit,
- preserve and enhance customer investments in both FileNet and IBM content management platforms,
- integrate IBM's BPM and service oriented architecture technologies with the FileNet platform, and
- train IBM and FileNet partners and services teams on both IBM and FileNet technology.