Symphony to buy Hummingbird for $465 million

Enterprise software developer Hummingbird Ltd. said today that it agreed to be purchased by holding company Symphony Technology Group in a deal valued at US$465 million.

The Toronto company develops enterprise content management (ECM) software that helps organizations manage documents, records, correspondence and contracts.

A third party, Tennenbaum Capital Partners LLC, will invest $135 million to help finance the transaction.

Hummingbird said the deal will generate immediate cash that will allow the company to continue to focus on its mission of offering ECM and connectivity products.

The company reported a $4.9 million profit in its second quarter, driven by winning new customers and expanding deals with existing customers. Hummingbird competes with other ECM developers including Interwoven Inc., IBM Corp., EMC Corp. and FileNet Corp.

Provided the transaction is approved by shareholders and regulators, the acquisition is expected to close in July.

Symphony Technology Group owns several companies including Information Resources Inc. and Gers Inc.

Founded in 1984, Hummingbird employs over 1,400 people and serves more than 33,000 corporate customers around the world.

Based in Palo Alto, Calif., Symphony is a holding company that employs more than 7,000 employees worldwide through its companies.

Hummingbird said its board of directors is unanimously recommending shareholder approval of the offer.

“This transaction will, on closing, generate an immediate cash return for Hummingbird shareholders and will allow the company to continue to focus on delivering leading ECM (business software) and network connectivity solutions for the benefit of our other stakeholders,” said Fred Sorkin, Hummingbird’s chairman and co-founder. “We are pleased that Symphony has recognized Hummingbird’s success to date and look forward to this next stage in the company’s life.”

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