IBM said Thursday it will pay about $1.6 billion in cash, or $35 per share, to acquire FileNet Corp., a Costa Mesa, Calif.-based developer of content and business process management software.
The move is an effort by IBM to bolster its presence in the lucrative market for products that help companies capture, process, and act on critical business information.
FileNet's main products include Content Manager, which allows users to more easily store and manage digital content; Email Manager, designed to help businesses deal with ever-increasing volumes of electronic messages; and Records Manager, software that can help companies in regulated industries comply with government regulations.
FileNet's customers include Amerada Hess, Citigroup, and Mutual of Omaha. The company posted revenues of $421.8 million in 2005.
FileNet's content management backbone is its P8 platform, which competes with IBM's Content Manager software. IBM executives say IBM will continue to develop both platforms.