Open Text Buys Eloquent

 
 
By Dennis Callaghan  |  Posted 2003-01-09 Email Print this article Print
 
 
 
 
 
 
 

The $6.7 million deal marks the second acquisition in a little more than two months for Open Text.

Collaboration and knowledge management software developer Open Text Corp. announced Thursday that it has entered into a definitive agreement to acquire Eloquent Inc., a developer of collaboration add-ons to sales force automation applications, in a cash deal currently valued at $6.7 million. Its the second acquisition in a little more than two months for Open Text, which completed its acquisition of messaging and collaboration software developer Centrinity Inc. Nov. 1. Eloquents flagship Launchforce product, what the San Mateo, Calif.-based company calls a "sales readiness" solution, will be integrated with Open Texts flagship Livelink system, the result of which will be Livelink for Sales Readiness, a packaged offering of collaboration tools designed to assist sales staffs.
Open Text, of Waterloo, Ontario, will also add live video conferencing and automatic archiving capabilities in Launchforce to Livelink and add more collaboration and knowledge and content management capabilities from Livelink to Launchforce.
"Going forward, we have a great opportunity to create new collaboration and knowledge management solutions by combining synchronized audio and video with Livelink and Livelink MeetingZone," said Open Text CEO Tom Jenkins in a statement. Eloquent CEO Cliff Reid said his company needed to find alternatives to maximize shareholder value and approached 60 companies about an acquisition before striking the deal with Open Text. "Our customers and prospects have become increasingly concerned about our financial position, which has slowed revenues and jeopardized our growth plans," said Reid, in a statement.
In its most recent reported quarter, ended Sept. 30, Eloquent lost nearly $2 million on just $708,000 in revenues. The deal, which must still be approved by Eloquent stockholders, is expected to close within the next 90 days.
 
 
 
 
 
 
 
 
 
 
 

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