EMC Corporation is to acquire Documentum in a billion dollar deal that it hopes will help it become a leader in the information lifecycle management marketplace.
Documentum offers a suite of enterprise content management and collaboration software that handles unstructured data – everything from electronic documents such as Web pages and spreadsheets, to medical records and audio/video content. The software provides automated document management, records management, Web content management, digital asset management, and collaboration tools.
Under terms of the agreement, Documentum stockholders will receive 2.175 shares of EMC common stock for each share of Documentum common stock. Based upon the EMC closing stock price of $14.45 on October 13, 2003, the transaction is valued at approximately $1.7 billion, excluding net cash in the business.
The acquisition is subject to customary closing conditions, including Documentum’s stockholder and regulatory approvals, and is expected to be completed in the first quarter of calendar year 2004.
Upon completion of the acquisition, EMC intends to operate Documentum as a software division of EMC headquartered in Pleasanton, CA, led by Dave DeWalt, Documentum’s current CEO. Documentum’s sales, marketing and services will remain focused on selling and servicing Documentum’s products and solutions.