IBM to Acquire FileNet to Advance Information On Demand Strategy

IBM to Acquire FileNet to Advance Information On Demand Strategy

IBM (NYSE: IBM) and FileNet Corporation (NASDAQ: FILE) today announced that the two companies have entered into a definitive agreement for IBM to acquire FileNet, a publicly held company based in Costa Mesa, Calif., in an all-cash transaction at a price of approximately $1.6 billion, or $35 per share. The acquisition is subject to FileNet shareholder approval, regulatory reviews and other customary closing conditions. It is expected to close in the fourth quarter of 2006.

FileNet is a leading provider of business process and content management solutions. This acquisition builds upon IBM’s Information on Demand initiative, launched in February 2006, to address the growing market opportunity around combining IBM’s software, services, partners and industry consulting expertise to improve clients’ business performance. The Information on Demand strategy aims to provide clients with data exactly when and how they need it to improve their business processes, quickly respond to market needs and rapidly identify new business opportunities.

A convergence of challenges facing businesses today — including globalization, mergers and acquisitions, information overload and regulatory compliance — are driving companies to find new ways to gain insight from their information so they can use it to grow their business. IBM’s acquisition of FileNet aims to further the company’s Information on Demand initiative, IBM’s strategy for addressing this growing market opportunity.

With information volumes growing and customers facing greater competitive pressures to be more responsive and efficient, enterprise content management (ECM) and business process management (BPM) are becoming more critical for improving business performance. IBM’s acquisition of FileNet will allow customers to benefit from the combined capabilities of both companies — from ensuring content is delivered and utilized in context of their business processes to achieving effective compliance, archiving and document retention.

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