KM World amazes and puts out an article on the same day.
BI vendor Hummingbird wooes PC DOCS
(Friday, March 5, 1999, 6:26 PM)
In an effort to create single point of access to every piece of an organization's structured and unstructured information, business intelligence vendor Hummingbird Communications has acquired PC DOCS Group in a stock swap worth approximately $155 million.
The new company will have a combined revenue of $240 million, over 1,500 employees and 2.5 million users worldwide. The transaction is expected to be completed by May, after which PC DOCS will operate as a wholly-owned Hummingbird subsidiary.
Hummingbird and PC DOCS will integrate their business intelligence, document management and search & retrieval technologies to create an Enterprise Knowledge Portal, described as a single Web page from which an end user can access any structured or unstructured information from databases, documents, spreadsheets, Web pages or E-mail.
The integrated product should be ready by the end of this year, according to both companies. Noting that other components (e.g. workflow) would be needed to create a true "knowledge portal," PC DOCS Group president and CEO Ruben Osten said future acquisitions are likely. "We're trying to get it in house" rather than partnering with another company, he said.
The deal appears to be a win-win for both companies. Aside from complimentary technologies, there is a 50% overlap in the sales channel and a shared customer base well exceeding that figure, according to Hummingbird president/CEO Fred Sorkin. The two Canadian companies also have similar cultures and are geographically proximal (about 5 minutes apart). Additionally, Hummingbird will benefit from PC DOCS' close ties to the Big Six integrators.
Sorkin estimates the new company will realize a 2-4% savings of going-forward revenue by consolidating sales forces, R&D and other offices, particularly those overseas.
Osten, who will remain as president of the PC DOCS division and join Hummingbird's board of directors as vice-chairman, denied that layoffs will occur, pointing instead to the need to "leverage our employees and responsibilities without increasing or reducing headcount."
Delphi Group analysts praised the acquisition as a win for both companies, pointing to an expanded channel and complimentary technologies.
However Delphi fears that the six months between acquisition and product release -- "a lifetime in the nascent and rapidly evolving corporate portals market" -- will take the shine off of an otherwise compelling combination.
"It is a reasonable expectation that multiple other vendors will have delivered or integrated similar solutions in this timeframe," according to Delphi, pointing to vendors like Plumtree who are already shipping similar products today.
|
