IBM has agreed to acquire FileNet to for USD 1.6 billion to boost its information-on-demand offerings. Privately owned FileNet is a provider of enterprise content management (ECM), business process management (BPM) and compliance solutions. This move will also strengthen IBM’s competitive edges against EMC Corp. in the content management market.
IBM plans to build upon the advanced Content Management technologies of both companies to provide customers and partners with industry-focused, high value solutions that are able to proactively capture and deliver content as part of a business process. These technologies can be integrated into IBM's service oriented architecture (SOA)-based capabilities, including business process management and information lifecycle management.
Following completion of the acquisition, IBM intends to combine FileNet's operations with IBM's Content Management business in the Information Management unit led by General Manager Ambuj Goyal.
The all-cash transaction is the third software-related acquisition that IBM has announced in a week. IBM expects the deal to close in the fourth quarter, subject to shareholder and regulatory approval.
IBM is on a path to boosts its profit margins in its services businesses, which accounts for half of its revenue. To enhance its growth through more sophisticated product offerings IBM has already made about 40 acquisitions in the past three years, and has said it plans further deals in software and services.
Recently, IBM has agreed to acquire MRO Software USD 740 million in cash and bought privately held Webify Solutions for an undisclosed amount to expand in the fast-growing market for integrating corporate software systems.
