FileNet is a publicly traded California company with an annual revenue last year of nearly $422 million. The 24-year-old company is one of the largest specialists in content and document management software sold to large corporations.

IBM said that it will integrate FileNet's products with its own content-management software developed in its Information Management division.

In addition, IBM said it will seek to combine FileNet's content-management software with its business process management tools for automating complex business workflows.

The acquisition price of $35 per FileNet share is only a slight premium over the closing price of FileNet's stock on Wednesday.

The transaction is expected to close in the fourth quarter. via