IDG News Service - Open Text said Wednesday it plans to acquire fellow content management tools provider Vignette for about US$310 million in cash and stock. The deal is expected to be finalized in the second half of this year.
The combined company will make Open Text, already one of the content management sector's few large independent companies, even bigger. Open Text, based in Waterloo, Ontario, Canada, has 46,000 customers and reported $725 million in revenue for 2008.
Its pending deal to buy Vignette follows the acquisition last year of data capture vendor Captaris for $131 million, and falls in line with a general trend toward consolidation in the content management arena. Autonomy recently announced its intentions to buy Open Text's rival Interwoven for $775 million.
Open Text executives plan to discuss the pending acquisition during its third-quarter earnings conference call later Wednesday.
(More to follow).
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