HP has announced plans to acquire Canberra-based documents and records management software company, Tower Software. The purchase price has not been disclosed.
HP South Pacific managing director, Paul Branding, said Tower gave HP a substantial boost to its existing compliance capabilities.
"We see this as a significant move to the forefront of a booming segment. The acquisition of Tower provides us with an end-to-end set of solutions in a $3 billion market globally that is experiencing 20 per cent growth," Branding said.
As part of the acquisition, most of Tower's 240 employees will be retained and integrated into HP's operations. Tower Software founder, Brant Hoff, said Tower's product sets were complementary to HP's product line-up.
Under an existing alliance, Tower integrates its Trim Context platform with the HP Integrated Archive Platform to provide customers with a combined records management and compliance archiving solution.
"We've been working with HP for a long time with some substantial bids to potential customers in the past," Hoff said.
Tower has been in operation for 22 years and claims more than 1000 customers globally. Its products are compliant with European, US and Australian regulations. Branding said the acquisition allowed it to leverage the Tower solution on a global scale.
"On a personal level, and as an Australian, I'm excited to be able to be able to help bring the expertise Tower offers to the global community," he said.
Tower's board of directors has unanimously approved the transaction and recommended shareholders accept HP's offer in the absence of a higher third-party offer. The deal is subject to regulatory approval and conditions and is expected to close by the end of the second quarter this year.