FileNet - IBM (M&A)

Filenet (FILE)
IBM
$1.6B

Summary

IBM buys a business process - content management software solutions company

$35 per FILE share: $1.6B total

Enables IBM to advance its information on demand strategy

Announced 8.10.06

Closed 10.12.06

Advisors

Financial

FILE: Merrill Lynch

Legal

IBM: Cravath
FILE: Latham & Watkins

Merger Agreement

General

EDGAR filing
Hyperlinked version
Detailed hyperlinked index follows

Article I Merger

1.01 The Merger
1.02 Closing
1.03 Effective Time
1.04 Effect of the Merger
1.05 Certificate of Incorporation; Bylaws
1.06 Directors
1.07 Officers

Article II Conversion of Securities

2.01 Conversion of Capital Stock
2.02 Exchange of Certificates

Article III Company Reps

3.01 Company
3.01(a) Organization, Standing and Corporate Power
3.01(b) Subsidiaries
3.01(c) Capital Structure
3.01(d) Authority; Noncontravention
3.01(e) SEC Documents
3.01(f) Information Supplied
3.01(g) Absence of Certain Changes or Events
3.01(h) Litigation
3.01(i) Contracts
3.01(j) Compliance with Laws
3.01(k) Absence of Changes in Benefit Plans; Labor
Relations
3.01(l) Environmental Matters
3.01(m) ERISA
3.01(n) Taxes
3.01(o) Properties
3.01(p) Intellectual Property
3.01(q) Insurance
3.01(r) State Takeover Statutes
3.01(s) Company Rights Agreement
3.01(t) Voting Requirements
3.01(u) Brokers; Schedule of Fees and Expenses
3.01(v) Opinion of Financial Advisor
3.01(w) Unlawful Payments
3.01(x) Government Contracts

Article III Parent-Sub Reps

3.02 Parent and Sub
3.02(a) Authority; Noncontravention
3.02(b) Share Transfer Books
3.02(c) Information Supplied
3.02(d) Interim Operations of Sub
3.02(e) Section 203 of the DGCL
3.02(f) Sufficiency of Funds

Article IV Covenants

4.01 Conduct of Business
4.02 No Solicitation
4.03 Conduct by Parent

Article V Additional Agreements

5.01 Proxy Statement; Stockholders Meeting
5.02 Access to Information; Confidentiality
5.03 Reasonable Best Efforts

5.04 Equity Awards
5.05 Indemnification, Exculpation and Insurance
5.06 Fees and Expenses
5.07 Public Announcements
5.08 Sub Compliance
5.09 Company Rights Agreement

Article VI Closing Conditions

6.01 Each Party
6.02 Parent and Sub
6.03 Company
6.04 Frustration of Closing Conditions

Article VII Termination, Amendment and Waiver

7.01 Termination
7.02 Effect of Termination
7.03 Amendment
7.04 Extension; Waiver

Article VIII General Provisions

8.01 Non-Survival of Representations
8.02 Notices
8.03 Definitions
8.04 Exhibits and Schedules
8.05 Counterparts
8.06 Entire Agreement
8.07 Governing Law (DE)
8.08 Assignment
8.09 Consent to Jurisdiction; Service of Process; Venue
8.10 Waiver of Jury Trial
8.11 Enforcement
8.12 Consents and Approvals
8.13 Severability

Other Agreements

Rights plan amendment

Proxy Solicitation

Definitive proxy statement 9.06.06

Table of contents

Preliminary proxy statement 8.24.06

Table of contents

Deal Protection

No shop covenant

Merger agreement §4.02
Proxy statement disclosure scroll down page

Break-up fee

$40,250,000
Merger agreement §5.06
Proxy statement disclosure

Regulatory Approvals

HSR Act

Merger agreement §6.01(b)
Proxy statement disclosure

Fairness Opinion

Merrill Lynch fairness opinion

Proxy statement disclosure

Tax Matters

Disclosure

Proxy statement disclosure

// This display the document title in the html page document.write(document.title);