EMC set to wrap up Documentum deal

By Stuart Finlayson

Storage giant EMC is ready to complete its US$1.7 billion (AUD$2.3 billion) acquisition of content management software provider Documentum by the end of the next week.

The merger, which was first announced in October, is heading for a speedy conclusion thanks in no small part to the companies gaining the necessary regulatory approvals in double quick time. The only potential hurdle that remains to the deal being finalised by the proposed date of December 18 is the shareholder vote for official recognition, but that is expected to be something of a formality.

Should the deal close on December 18, EMC expects to factor in around US$30 to US$35 million (AUD$40.6 to AUD$47.4 million) in revenue from Documentum's fourth quarter into EMC's fourth quarter results. EMC expects its fourth quarter revenues to be somewhere between US$1.8 and US$1.825 billion (AUD$2.43 and AUD$2.47 billion).

EMC believes that the acquisition of Documentum will help it to further its Information Lifecycle Management (ILM) strategy, which aims to help business mange their storage in a more cost effective and efficient manner.

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