Hyland Software, developer of OnBase ECM, has been acquired (58% controlling stake) by a private equity firm for $265 million -- quite a substantial sum for a firm that posted revenues around $70 million. What does it mean for buyers of Hyland's software? Well for the time being it seems like a good thing. The money helps secure the future of Hyland, and perhaps allows them to acquire other capabilities (whereas in the past all Hyland's growth has come organically -- not enough in such a competitive market). I'd guess that any acquisitions would focus on the healthcare sector, and that Hyland will aim to grow its US healthcare business substantially.

The acquisition can also be seen as validation of Hyland's strategy of staying focused on a couple of key industry sectors (mid-tier banking and healthcare) -- something other mid sized ECM vendors such as Tower and Vignette, have surely noted.