HP to buy documents management software company

SAN FRANCISCO (Reuters) - Hewlett-Packard Co (HPQ.N: Quote, Profile, Research) said on Monday it would buy Tower Software, a developer of document and records management software, aiming to take advantage of heightened business regulation and the growing importance of electronic records.

HP said that Tower, based in Canberra, Australia, would help it boost its offering in the electronic discovery and compliance software market, complimenting technology that HP already has in that and related areas.

HP and Tower said the three largest shareholders of Tower, Quadrant Private Equity, Brand Hoff and Martin Harwood, Tower's chief executive, have indicated that their related interests would accept HP's offer in the absence of a higher third-party offer.

Between them, the three own more than 90 percent of the company's stock. Tower has 240 employees, the two companies said in a statement.

HP has agreed to pay A$3.39 per share for Tower. The companies did not say how many shares outstanding there were, which would be needed to calculate the value of the deal.

HP shares fell 43 cents, or less than 1 percent, to close at $45.66.

(Reporting by Duncan Martell; Editing by Andre Grenon)