Hummingbird to be acquired for $465 million

Enterprise software developer Hummingbird Ltd. said on Friday 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.