According to market research firm IDC, IBM was third in enterprise content management, with $291 million in revenue, and Costa Mesa, Calif.-based FileNet was second, with $293 million, according to 2005 figures. Combined, they would overtake EMC Corp., currently the leader with $362 million.
IBM said it would combine FileNet's operations with IBM's Content Management business in the Information Management unit led by General Manager Ambuj Goyal, with the goal of preserving and enhancing user investments in both platforms.
The company also said it would integrate its business process management and service-oriented architecture technologies with the FileNet platform.
IBM has said it is investing $1 billion in research in an initiative it calls Information on Demand, of which it considers enterprise content management a key component.
The acquisition is subject to FileNet shareholder approval and regulatory reviews and is expected to close in the fourth quarter of 2006.
For IBM, the deal is another in a line of recent SOA purchases. Last week, it agreed to buy Webify Solutions Inc. for an undisclosed sum, and service management company MRO Software Inc. for $740 million in cash. Webify develops tools for linking business processes in an SOA, optimized for IBM's software platforms and aimed at four vertical markets. MRO Software develops software for managing services and assets, including IT assets.
Peter Sayer of the IDG News Service contributed to this report.