Surprise, Mergers Still Possible (IWOV)

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It is almost hard to believe, but there is another merger announcement this morning.  Interwoven, Inc. (NASDAQ: IWOV) has entered into a definitive agreement to be acquired by UK-based Autonomy Corporation plc.  The merger valued Interwoven at $16.20 in cash per share in a deal worth a total of roughly $775 million.

Interwoven shares are up 30% at $15.43 in early trading.  Its 52-weektrading range is $9.67 to $16.01.  If you look back five years, thisstock has traded north of $15.00 for probably only about 4 months.  Soeveryone will be made whole here in this merger. Interwoven has almostno long-term debt and more than $200 million in liquid assets via cash,cash equivalents, and receivables.

What is interesting is that analysts were expecting this company togrow its earnings and revenues in 2009 to $0.83 EPS and $288.85 millionin revenues.

This merger will marry Interwoven’s content management solutions withAutonomy’s infrastructure software which are meant to improve humaninteractions with information.  The companies said they aim to changethe way customers will discover, analyze, and manage human friendlyinformation.  This will also continue the extension of Autonomy’s Intelligent DataOperating Layer, an information infrastructure to search and processover 1,000 data types.

The directors and certain executive officers of Autonomy and Interwovenhave agreed to vote the shares they own in favor of the acquisition,which is expected to close in Q2-2009.  This is still subject toshareholder and appropriate regulatory approvals, as well as otherclosing conditions.

Jon C. Ogg
January 22, 2009