By acquiring Documentum, EMC moves even further up the "information lifecycle management" stack. Whereas EMC's traditional portfolio of software -- including EMC ControlCenter -- is designed to manage devices and storage networks, Documentum's software manages the details of how companies' documents and electronic records are stored and accessed. EMC did note that it has been working with Documentum since April 2002, when EMC rolled out Centera, its content-addressed storage system that is designed to store huge amounts of "fixed content" on inexpensive hard disk drives (see EMC Centera Gains Documentum).
The companies said the acquisition is subject to customary closing conditions, including Documentum's stockholder and regulatory approvals, and is expected to be completed in the first quarter of calendar year 2004. When the deal is completed, EMC expects to take a charge in the quarter the transaction is closed for the value of Documentum's in-process research and development costs and other integration expenses.
EMC said it intends to operate Documentum as a software division of EMC and retain its headquarters in Pleasanton, led by Dave DeWalt, Documentum's current CEO. That's the same kind of arrangement that EMC has in mind for Legato, which will continue to be headed by Legato CEO David Wright.
Also today, EMC announced preliminary results for its third quarter, which ended Sept. 30. The company expects revenue to be about $1.51 billion and earnings to be $0.07 per share, including a $0.02 per share benefit resulting from "the favorable resolution of an income tax audit," EMC says (see EMC Raises Q3 Guidance).
Todd Spangler, US Editor, Byte and Switch
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