Content Management Company RedDot Acquired by hummingbird28 Jun, 2005
Content Management Company RedDot Acquired by hummingbird
Hummingbird Ltd., a provider of integrated enterprise content management (ECM) solutions, announced the acquisition of RedDot Solutions AG, a privately held provider of content management software, headquartered in Oldenburg Germany and New York. With over 1,300 clients globally, RedDot Solutions is recognized as a leader in delivering simple to install and easy to use content management solutions to mid-size enterprises.
The acquisition of RedDot Solutions is a natural extension of a long-standing and successful partnership the two companies have forged to address the needs of mutual customers for integrated enterprise content management solutions. The partnership has created a strong foundation for product integration and market development, resulting in demonstrated traction for the joint solution.
Hummingbird acquired the shares of RedDot Solutions for an initial cash consideration of Euro 39.1 million (US dollar 47.5 million) and an additional cash consideration estimated at approximately Euro 4.5 million (US dollar 5.5 million) payable after December 31, 2005, based upon performance targets.
RedDot Solutions will function as a subsidiary of Hummingbird and will continue to serve all its existing clients globally. The executive management of RedDot will remain in charge of operations.
"The acquisition represents the next phase of our accelerated growth to mid-size enterprises for content management solutions," said Niels Metger, Chief Executive Officer and Founder of RedDot Solutions. "Our content management suite is a natural fit with Hummingbird Enterprise as they share a common foundation for providing scalable out-of-the-box functionality, rapid deployment and low cost of total ownership," added Metger.
"Consistent with our philosophy of delivering customer and shareholder value we have first built a successful partnership and a customer base with RedDot Solutions," said Barry Litwin, President and Chief Executive Officer of Hummingbird Ltd. "We now have a fully developed and complementary business model already in place, an integration that is fully supported by Hummingbird, and traction within our respective customer bases that will further benefit from this acquisition," added Litwin.
"The acquisition of RedDot Solutions is a further indication of our commitment to rapidly advance our market leadership in the Enterprise Content Management market segment," said Barry Litwin, President and Chief Executive Officer of Hummingbird. "We have developed a highly effective business model that combines organic growth with prudent and well thought out acquisitions that yield profitable operations," he added.