Open Text acquires Corechange for US$3.6M

Open Text acquires Corechange for US$3.6M

Intranet software maker, Open Text, has acquired enterprise portals developer, Corechange, whose technology Open Text plans to integrate with its own Livelink product.

A regulatory filing reveals that Open Text paid $US3.6 million in cash for Corechange with additional cash payments possible based on Corechange's revenue during the next year.

Corechange is the developer of Coreport, a software product that can be used for internal and external portal systems integrating corporate documents, applications and services.

Ontario-based Open Text intends to mesh Coreport with its Livelink collaboration and knowledge management software that includes document storage, discussion, search, scheduling and workflow management features.

Open Text would continue supporting Coreport's 150 customers and sell Coreport as a stand-alone product, Open Text's senior vice-president of business development, Bill Forquer, said. It would also boost Coreport's connections with Livelink and draw on the Corechange staff's experience with portals to enhance Livelink's content integration features, he said.

Analysts have been predicting imminent consolidation in the fragmented market for enterprise portal software. With major vendors such as Oracle, IBM and PeopleSoft competing in the market, only one or two pure-play developers were likely to survive, Jupitermedia's research unit said in a recent report.

Corechange suffered as customers began moving away from niche vendors, Forquer said.

"Increasingly, we think most customers prefer to get their portal from their content management and collaboration vendor or their infrastructure supplier," he said.

Of Corechange's 75 employees, 35 would move to Open Text, according to Forquer.

Layoffs would come primarily from Corechange's marketing, finance and administrative departments, he said. Open Text planned to keep Corechange's staff in Boston and create an Open Text office in the city.

Open Text has recently purchased several other companies to integrate their technology with Livelink. It agreed - in January - to pay up to $US6.7 million for sales software maker Eloquent and - in November - spent $US20.3 million to buy unified communications software developer Centrinity.

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