Byrne Tony Byrne

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Hummingbird's private exit

29-May-2006

Tags: Document Management (ECM), Web Content and Experience Management, Marketplace at Large, Vendor Viability & Financials,

Here's one way out for content management vendors stuck in the netherworld between infrastructure mammoths and sprightly niche players: sell out to a private-equity firm. That's what Serena did, Broadvision tried to do, and now Hummingbird has pulled off, with its pending acquisition by Symphony Technology Group (Hummingbird's board has approved the deal, but its shareholders could theoretically veto it). For Hummingbird customers, the deal may seem attractive compared to, say, a messy merger with a competing vendor. The company's new owners will doubtless stress continuity and efficiencies. It's certainly cheaper to operate a privately-held company. But change could come swiftly nonetheless: private-equity groups often get paid by making tough cuts that previous management was unwilling or unable to make. You could also see this as a quick but graceful exit by Hummingbird's management, several of whom were large shareholders who can now unload their stock for a decent sum. For RedDot WCM customers, it was a short ride from private (RedDot Solutions) to public (Hummingbird) and now private (Symphony) again.

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