Interwoven Inc. announced Wednesday that it has entered into an agreement to acquire iManage Inc., cementing a partnership the companies have had in place for the past six months.
The cash and stock deal calls for iManage shareholders to receive $1.20 and 2.0943 shares of Interwoven stock for every iManage share they own, valuing the deal at $171 million.
Interwoven, of Sunnyvale, Calif., develops content management software. Foster City, Calif.-based iManage develops document management and collaboration software. The two companies in February announced a joint offering, available since April, that added iManages Worksite MP product for collaborative document management to Interwovens content management offerings.
The acquisition cements that relationship and is the second Interwoven has made this year. Interwoven acquired digital asset management software developer MediaBin in June.
Combined, Interwoven and iManage will have more than 2,500 customers. Martin Brauns, Interwoven CEO said in a statement that customers were demanding more comprehensive solutions developed by a single vendor. He saw law firms would be a key vertical target for the combined company.
"iManages core legal market plays an important role in our plans for the future—our products can rapidly extend iManages core capabilities to enable law firms to build comprehensive and dynamic knowledge portals, intranets, and extranets to fully utilize the content within iManage and gain a competitive edge," Brauns said.
IManage has a strong customer base in professional and financial services, while Interwoven is strongest in manufacturing and consumer goods, officials said.
The combined companies plan to integrate iManages collaborative technology with Interwoven MetaTagger content intelligence server software, to improve the ability to personalize and find relevant content; and link iManages scalable content repository with Interwoven OpenDeploy content distribution software, to distribute collaboratively developed documents and corporate knowledge, officials said.
The new company will be named Interwoven and will be headquartered in Sunnyvale. The deal is expected to close by the fourth quarter, subject to shareholder and regulatory approval.