HP has agreed to purchase data management firm Tower Software for an undisclosed sum.

The Australian software company specialises in software which allows companies to track electronic and paper records.

HP plans to incorporate Tower's software into its own compliance portfolio, which allows enterprises to manage documents and keep records according to data archiving and e-discovery laws.

"In reaction to increased business regulation, e-records management has moved from a back-office task to a business-critical function," said Robin Purohit, vice president and general manager of HP's information management software branch.

"The combination of HP and Tower is expected to be hugely beneficial to the legal and IT organisations of businesses all over the world."

HP said that it has already secured approval for the deal with more than 90 per cent of Tower's shareholders. The company expects the purchase to be finalised by the end of June.

Brand Hoff, founder of Tower, said that he hopes the deal will allow his company's software to leverage HP's name and reach a much larger audience.

"When I founded Tower more than 20 years ago, we set out to develop the world's best records and document management software," he said. "This will mark a new era for Tower's customers, employees and partners."