WSJ.com - IBM Agrees to Buy FileNet for $1.6 Billion

"International Business Machines Corp. agreed to acquire FileNet Corp. for $1.6 billion in cash, continuing a string of acquisitions in the business software market.
FileNet, of Costa Mesa, Calif., makes software used to manage documents within an organization as well as content on corporate Web sites. Founded in 1982, the company has more than 4,000 customers including Bank of America, Hewlett-Packard and the Australian Tax Office.
IBM has offered to pay $35 a share, which would be a 1% premium to FileNet's closing price Wednesday of $34.65 on the Nasdaq Stock Market. IBM expects to close the deal, which must be approved by FileNet holders, in the fourth quarter.
IBM, of Armonk, N.Y., has been steadily expanding its highly profitable software business by acquiring more than 30 software companies since 2001."