Dateline 6th May 2009. Open Text announce in an Open Text acquisition press release the acquisition of Vignette on of the leading WCM players for the old days.
“Vignette shareholders will receive US $8.00 in cash plus 0.1447 of an Open Text common share for every Vignette common share which equates to approximately US $12.70 at close of market on May 5, 2009. This represents a premium of approximately 74% above the 30 trading day average closing price of Vignette’s shares and approximately 41% above the most recent closing price. This values the transaction at approximately US $310 million.”
I had recently put up a post called where have all the vendors gone, dated the 17th April. At the end of this post I posed what will happen to Vignette, well we now know don’t we.
Open Text now eat the big V and the question is will they get indigestion over this dinner? Open Text have been on the acquisition trail over the last couple of years.
Given that 28% of Vignettes 2008 revenues were from new licences what have Open Text bought? A bunch of service contracts and the opportunity to convert customers?
However these are perilous times where customers will look to options. Good luck Open Text and goodbye Vignette, you were a leader once.
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