Armonk, N.Y. - Just a little over two weeks ago, Insurance Networking News reported IBM's acquisition of Austin, Texas-based Webify Solutions, which brought the total of IBM acquisitions to three in less than 15 months (See "IBM Sets SOA Sail"). Now IBM is adding another acquisition to the list.IBM and FileNet Corp. entered into a definitive agreement for Armonk, N.Y.-based IBM to acquire FileNet, a publicly held company headquartered in Costa Mesa, Calif., in an all-cash transaction at a price of approximately $1.6 billion, or $35 per share. The acquisition is subject to FileNet shareholder approval, regulatory reviews and other customary closing conditions. It is expected to close in the fourth quarter of 2006.

"This is basically good news for the insurance industry, which is facing increasing demands from regulators, customers and business partners to manage content, documents and processes consistently and transparently," says Donald Light, senior analyst at Celent LLC, a Boston-based research and advisory firm. "FileNet's already significant position in the insurance industry will get a big boost from Big Blue's dominant position in insurance data centers."

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