Software vendor, Vignette, has acquired one of Australia’s most successful software developers, Tower Technology, for $US125 million.
Vignette will pay $US45 million in cash and $US80m in stock for the company, the majority of which is owned by institutional investors.
Vignette senior vice-president, Bryce Johnson, told ARN that the vendor had been on an 18-month journey, attempting to fill in the missing pieces in its software stack with the ultimate aim of building a rounded Enterprise Content Management (ECM) solution.
It can now combine its own Internet content management software, with the portal software of recently-acquired Epicentric, the collaboration software of the recently-acquired Intraspect, and now the document and records management software produced by Tower Technology.
“We identified our acquisition targets and were lucky enough to get our first pick in every category,” Johnson said.
The two vendors’ product sets were complimentary, he said, as were the geographic areas in which they were strongest (Vignette in the Americas, Tower in Europe and Australasia).
Vignette Was yet to confirm whether it would reduce Tower Technology’s headcount, but has committed to keeping Tower’s development centre in Australia.
Director of research and development for Tower, Jon Palin, said the two companies hadworked together on several deals in the past.
“From a technical standpoint, both products are completely based on Java Enterprise Edition (J2ee) and the integration should be straightforward,” he said.
Both companies do most of their business direct, with the exception of working with some very large systems integrators such as Accenture, EDS, IBM Global Services, KAZ and Alphawest.