Knowledge management software vendor Open Text Corp is set to acquire floundering Lava Systems Inc of Toronto on undisclosed financial terms. With the purchase, Waterloo, Ontario-based Open Text acquires technology for mining information contained in leading ERP systems which it can then integrate into its own Livelink collaborative knowledge management system. Open Text says it plans to fully support Lava customers and will continue to enhance Lava’s suite of products as it invests in developing a tight integration between Lava Enabler and Lava DMS with Livelink. The combined company will have approximately 700 employees and offices throughout North America, Europe and Asia. Lava boasts customers throughout those regions, including Allstate, CIBC, Halifax Insurance, K-Mart, and Seagrams. Its main strength has traditionally been in the financial services and insurance markets but the company has seen tough times lately as it made the transition from a reseller model to a direct sales strategy. Following a poor third quarter, the company’s principal creditor put it into receivership.
