Content management suppliers Interwoven and iManage are merging their businesses to broaden their offerings to customers, in a stock and cash deal valued at $171m (£107m).
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Dan Carmel, vice-president of marketing and business development for collaborative content management supplier iManage, said the merger was a natural progression from the companies' reseller agreement made earlier this year.
Under that deal, iManage sold Interwoven's WorkSite MP Suite, including document management, web collaboration, workflow and portal applications, to iManage customers who wanted products that iManage did not sell directly.
Customer demand for products made by the companies helped inspire the merger, Carmel said. "Interwoven saw the opportunity here and the excitement on the part of their customer base... and it only made sense with customers demanding [the complimentary products] to consider a merger."
Interwoven will keep its name and remain at its facility in California after the deal is completed. The two companies have about 2,500 customers between them with "very little overlap", Carmel said.
John Bara, vice-president of marketing for Interwoven, said the merger was well balanced because his company brings strength in content management products, while iManage is strong in collaboration and document and e-mail management products.
Mahmood Panjwani, president and chief executive officer of iManage, said the reseller agreement already in place between the companies has shown "how our teams and products are aligned, and it is a natural progression to unite".
Chief information officer Terry Crum at law firm Jones Day, a customer of both companies, said he expected significant benefits from the merger.
"Firms today have a need for collaborative document management as well as web-based content distribution, publishing and workflow," Crum said. "The union of iManage and Interwoven brings these capabilities into a single product line and will enable us to create powerful applications to better serve our clients, at a lower cost."
Todd R Weiss writes for Computerworld