Open Text to acquire Lava Systems
Less than a month after a failed attempt to merge with PC DOCS Group International, Open Text has announced that it has signed a purchase agreement to acquire certain assets of LAVA Systems. Terms of the agreement were not disclosed, but Lava Systems recently went into receivership after reporting lower than expected revenues and earnings.Open Text cited Lava's substantial business practice in the financial services and insurance verticals, as well as the prospect of adding Lava's enterprise integration capabilities to Open Text Livelink as reasons for the acquisition."Open Text plans to fully support LAVA customers and will continue to enhance Lava's suite of products," said Tom Jenkins, Open Text's CEO. "We plan to invest in developing a tight integration between Lava Enabler and Lava DMS with Livelink so that both Livelink and Lava customers see tremendous value added to their original investments."The combined company will have approximately 700 employees and offices throughout North America, Europe and Asia.