The companies said that the combination of Interwoven’s content management software with iManage’s document management and collaboration software will give customers a more complete set of offerings from a single vendor.
The two companies have a combined customer base of over 2500 companies, with very little overlap, opening the door to substantial cross-sell and up-sell opportunities for the combined company, the companies said in a statement.
The two companies have been working together under a reseller agreement for most of this year. They said that both suites were developed using the same technology – J2EE – so integration work should be easier.
iManage shareholders will receive $1.20 per share in cash and 2.0943 shares of Interwoven stock for each share of iManage stock they own. This adds up to $171m, about $32.9m in cash. Interwoven shareholders will own 67% of the combined firm.
iManage is a profitable company with growing revenues, while Interwoven is still losing money, albeit not as much as last year, on steadily declining revenue.
In April, Interwoven CEO John Van Siclen quit after the company predicted no end this year to the declines in its financial performance. At the time, ComputerWire suggested a merger may be the company’s best strategy.
Source: Computerwire
