Hummingbird Communications is buying PC Docs Group International in a stock deal valued at about $US155 million, Hummingbird officials said at a press conference on Friday.
Each outstanding common share of PC Docs will be exchanged for 0.3333 of a Hummingbird common share under terms of the deal. PC Docs will be a wholly owned subsidiary of Hummingbird.
Hummingbird, in North York, Ontario, is an enterprise connectivity software vendor specialising in business intelligence products. PC Docs Group, which also has three subsidiaries, is based in Burlington, Massachusetts, and makes client-server and Internet document management and financial and case management systems.
Officials from both companies said that the merger enables the two companies to combine resources and move more aggressively into the business intelligence software market. Hummingbird intends to integrate its business intelligence technology with PC Docs products.
More than half of the distribution channels used by the two individual companies are the same, and so "it will be very, very synergistic," said Fred Sorkin, president and chief executive officer of Hummingbird.