EMC offers to buy Documentum in $1.7 billion stock deal

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Information storage firm EMC Corp. has signed a definitive agreement to acquire enterprise content management software Documentum Inc. in a stock transaction worth approximately $1.7 billion.

Under the proposal, Documentum stockholders would receive 2.175 shares of EMC common stock for each share of Documentum common stock. Based upon the EMC's closing stock price of $14.45 on Oct. 13, the transaction would be worth approximately $1.7 billion. The companies say the acquisition could close in the first quarter of 2004.

When and if the transaction is completed, EMC would operate Documentum as a software division of EMC, remaining at Documentum's current headquarters in Pleasanton, Calif., and led by Documentum CEO David DeWalt. The new entity would have a combined total of more than $2 billion in software license and support revenues, based in the most recent 12-month results.

EMC says by integrating Documentum's intelligent content management technology with EMC's software for data protection, storage management and information management, as well as its networked storage platforms, customers "will be able to better align their content with their information infrastructure." It also would create "a total information lifecycle management solution for managing unstructured content, from creation and use to archive and disposal."