HP (NYSE:HPQ) has signed a pre-bid agreement to acquire Canberra, Australia-based document and records management software company, Tower. The deal will enable HP to expand its reach into the electronic discovery and compliance software market.

The acquisition will add electronic records management to HP's existing e-discovery and compliance capabilities in information collection and retention. Under an existing partnership, Tower TRIM Context has been integrated with HP's Integrated Archive Platform to deliver a combined records management and compliance archiving solution.

"In reaction to increased business regulation, electronic records management has moved from a back-office task to a business-critical function," Robin Purohit, vice president and general manager of information management at HP Software, said in a statement.