Documentum Acquires Eroom

Documentum, the document management software company, flush with news of a better than expected quarter, announced the acquisition of collaboration software vendor eRoom.  This will allow Documentum to offer not just Enterprise Document Management but to expand its offering to include a full set of collaboration features.

The acquisition, which is scheduled to close in December, was priced at $12.7 million in cash plus 7.7 million shares of stock, with an additional 1.7 million shares of stock being held in reserve for committed options.

We have been awaiting further consolidation in this sector, as well as in related sectors such as portals, as market economics, and the customer demand for integrated function, make such convergence both logical and economically appealing.

You will find the full Documentum/eRoom news release at http://www.documentum.com/news_events/news/pr2002/Q4/100302-1.htm  

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