Tuesday, October 22, 2002

Documentum Acquires eRoom for $96m


Documentum Buys eRoom for $96M
By boston.internet.com Staff

1”>- content_start—>Beefing up its content management software with a popular collaboration tool, Documentum%20%20Friday%20said%20it%20will%20buy%20eRoom Technology in a stock and cash deal worth about $96 million.

RK: On p. 116 of the book, we talked about an eRoom/PC DOCS integration built by Matrix Logic. (More on this integration is here.)

Just a quick update to note the above: Documentum, a competitor to PC DOCS in the document management space, acquired eRoom earlier this month. While this doesn’t necessarily change anything about the Matrix Logic arrangement, keep in mind that acquisitions like this happen often and can dramatically affect your technology choices. (Ask yourself: will Documentum have any incentive to continue to support an integration that directly competes with themselves?)

Another good example of this is Niku’s failed acquisition of former extranet provider Legal Anywhere. Legal Anywhere was a small but growing provider of extranet services to the legal profession until they were acquired in late 1999 by new company Niku. Niku proceeded to go public – at one point their stock was worth more than $100 (it now trades at $.19) – and gradually eroded their support of the legal division. More than a year ago, Niku shut down the Legal Anywhere group – leaving dozens of large law firms without an extranet provider.


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