Feeds

Stellent buys Optika

Continuing wave of consolidation

  • alert
  • submit to reddit

Mobile application security vulnerability report

Stellent's acquisition of Optika will continue a wave of consolidation as enterprise content management vendors seek to offer a complete suite of products. However, this latest acquisition could make Stellent itself an attractive target for a major software company such as Oracle.

Stellent, the enterprise content management software maker, is paying $10 million in cash and 4.1 million shares for Optika in a deal that will total $59 million and give Optika's shareholders about 16% of the stock of the combined company.

Though it made a modest profit of $183,000 in its last quarter to September 30 on revenue of $5.3 million, Optika has an undistinguished financial record. The attraction to Stellent is its Acorde system to integrate imaging, workflow, collaboration and document/records management capabilities into a single platform.

Stellent CEO Robert Olson said customers are looking to consolidate their content management needs, including imaging, business process management, web content management and record management with one vendor. He said the merger will enable Stellent to provide a comprehensive suite for managing both consumption-orientated content and high-volume transaction-based content.

Combined, the two companies will have an annual revenue run-rate of about $100 million, which is modest given that the content management market is forecast to grow from $2.29 billion in 2002 to $3.8 billion in 2007.

Stellent has been acquisitive of late. It bought Ancept last August for its Media Server technology, while in March it moved into the hosting market with the purchase of Active IQ Technologies.

Stellent also announced that it is sticking to its previous guidance and expects revenue for its third quarter to December 31 to grow about 20% to between $9.2 million and $10.3 million.

Stellent's belief that customers want their needs to be satisfied by a single vendor applies on a larger scale too. Its acquisition of Optika makes it a more attractive target to a major software company and hungry companies such as Oracle [ORCL] could soon be knocking on its door.

This article is based on material originally published by ComputerWire

Related Research
Datamonitor, "Oracle: Upwardly Mobile?"

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.