"We believe there is a natural synergy between the document management customer base of PC Docs and our Web-based collaborative knowledge management products," said Tom Jenkins, chief executive of Open Text. "By joining forces, we believe our combined operations would achieve increased efficiencies and enhanced support for our existing and new customers and would result in increased value for the shareholders of both companies."
The Waterloo, Ontario-based Open Text is offering PC Docs shareholders one share of Open Text stock for each four shares of PC Docs common stock, a transaction worth about $106 million. Open text claims the offer is 35 percent greater than the current value of PC Docs shares based on Monday's closing price of $3.31 per share. Open Text closed at $18.31 per share.
PC Docs executives could not be reached by press time and the company has yet to respond publicly to the offer which was made Monday.
Open Text is hoping that PC Docs would be able to extend its document management software to the Internet using Open Text's LiveLink software.
"We believe PC Docs customers would benefit by having access to a wider range of Web technologies for collaborative knowledge management," Jenkins said. "PC Docs users would have the ability to extend their applications at the enterprise and extranet levels using LiveLink."
Open Text has given PC Docs' board of directors until next Tuesday to respond. If the offer is accepted, the merger would still need regulatory and shareholder approval.