Feeds

Open Text: big, bigger, biggest

Now is the winter of our content

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Canadian software maker Open Text is offering a friendly bid of around $233 million to buy Ixos Software. By merging, the two companies hope to create the world's largest enterprise content management software vendor, and defend their positions against their fast-growing rivals.

If its proposed acquisition of Ixos goes through, Open Text faces the usual challenges of picking through the overlaps of the two product sets to present a coherent single offering to the market. Software companies are difficult (and costly) to integrate and it remains to be seen how a Canadian company that plans to run a large part of its business from Chicago will meld with a German company almost the same size. However, having successfully absorbed 20 or so software companies in the past no other firm in the industry perhaps has greater experience in this respect. Ixos too has recently absorbed two technology-based acquisitions - buying Swiss ECM company Obtree Technologies and German workflow vendor PowerWork at the beginning of this year.

Admittedly Ixos will be a big financial nut for Open Text to swallow, and its impact on Open Text is unclear at this stage. Some financial analysts watching the deal believe that if the bulk of Ixos' shareholders choose to receive Open Text stock, then Open Text's EPS will show minimal growth due to the resulting dilution, and that Open Text's overall growth rate will suffer by adding the slow-growing Ixos to its revenue mix. Nevertheless, Ixos' snail-like growth rate must be weighed against the added 'heft' it brings to Open Text, not to mention an expanded customer base.

Ultimately, Open Text's takeover shows how consolidation continues unabated in all sectors of the enterprise software market. Open Text's move comes a week after storage giant EMC tabled a $1.7 billion bid for California-based content management provider Documentum, leading some analysts to question Open Text's ability to defend its position in the market against bigger players. Indeed, Open Text's move is largely a reaction to such market consolidation, although it denies it was a response to EMC's Documentum bid in particular.

Source: Computerwire/Datamonitor

Remote control for virtualized desktops

More from The Register

next story
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.