Open Text, a provider of Livelink collaboration and
content management software for the enterprise, announced that it
will acquire Gauss Interprise, a German-based web content
management software company.
The $11m (£7m) deal, which is subject to the response of Gauss
shareholders, is a good deal for both companies, said Tom Jenkins,
chief executive officer of Open Text. Customers would see enhanced
technology and product offerings in the future as a result of the
acquisition, he added.
"We believe the combo of two companies represents one of the
most comprehensive enterprise content management systems available
in the market today," he said, adding that as the trend of
consolidation in the software industry continues, customers are
looking for integrated suites of products to manage their
enterprise content.
As Gauss, with headquarters in Germany and California becomes
part of Open Text, both companies will gain increased critical mass
in some of the key technologies that constitute enterprise content
management, as well as an expanded customer install base.
The Gauss office in the US provides Integrated Document and
Output Management (IDOM) software for ERP systems - products that
automate processes such as invoicing, and enable customers to
convert paper into electronic documents via imaging technology. The
German offices focus mainly on Web Content Management (WCM).
Upon successful completion of the tender, Jenkins said Open Text
plans to merge its own WCM and IDOM operations together with Gauss,
in an effort to enhance the product and features of the technology
for both customer bases.
Open Text said WCM solutions will offer customers a complete
range of capabilities for corporate web sites, intranets and
extranets. Worldwide, Gauss has about 1,100 customers, while Open
Text has corporate deployments in 31 countries.
Open Text estimated the acquisition will add $10m to its yearly
profit. That would bring earnings to $225m (£144m) in the financial
year ending in June 2004.
The deal is due to close by the end of the year.
Allison Taylor writes for ITWorldCanada.com