Open Text acquiring Vignette

One content management player is buying another in a deal worth $310 million

Open Text said Wednesday it plans to acquire fellow content management tools provider Vignette for about US$310 million in cash and stock. The deal is expected to be finalized in the second half of this year.

The combined company will make Open Text, already one of the content management sector's few large independent companies, even bigger. Open Text, based in Waterloo, Ontario, Canada, has 46,000 customers and reported $725 million in revenue for 2008.

Its pending deal to buy Vignette follows the acquisition last year of data capture vendor Captaris for $131 million, and falls in line with a general trend toward consolidation in the content management arena. Autonomy recently announced its intentions to buy Open Text's rival Interwoven for $775 million.

Vignette has struggled in recent years, leading to widespread speculation it was ripe for a sale.

Now that one is about to occur, significant questions loom about Vignette's fate, since there is "a tremendous amount of overlap" between its products and Open Text's, said 451 Group analyst Kathleen Reidy.

However, Vignette's WCM (web content management) software is "a little higher-end" than Open Text's, she added. "You could make the argument that Vignette will become the more enterprise WCM option."

Meanwhile, the WCM market's dynamics are changing, according to Reidy. "Just because the bigger players have been bought there's no shortage of new vendors out there," she said.

The sort of million-dollar deals for large enterprises that Vignette and Interwoven have typically done only represent a small percentage of the demand for WCM software, leaving plenty of room for alternatives, from commercial open-source vendors like Alfresco to various SaaS (software-as-a-service) options, she said.

And while core WCM technology, such as document repositories, is fairly commoditized, there remains room for innovation, such as making tools easier for nontechnical workers to use, Reidy added.

"Web content management's point was to remove IT bottlenecks from Web publishing. ... But the amount of development involvement in changing [site] layout or putting up content has always remained higher than it was supposed to be," she said.

Open Text executives plan to discuss the pending acquisition during its third-quarter earnings conference call later Wednesday.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Open Textmergers & acquistionsvignette

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?