(OTC.TO) says it has signed a deal to buy Dell EMC’s enterprise content division for US$1.62 billion.
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Barclays acted as a financial advisor to OpenText and provided a $1 billion debt commitment in support of the transaction.
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OpenText and Dell EMC also announced their intention to negotiate a strategic commercial partnership to expand customer offerings and to better serve customer needs. “We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText”. Open Text said it expects the deal, which should close within 90 to 120 days, to immediately add to earnings.
Business software company OpenText Corp.
The deal allows Dell and EMC to “refocus where their true DNA lies”. These statements are based on OpenText’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. The company, with $1.9 billion in revenue in 2015, bought Recommind, a provider of e-discovery and information analytics tools, in July, and it closed a deal for HP’s customer communications management assets in early August. “It’s a much bigger vision that OpenText has had for public cloud”.
When combined with existing OpenText products, these offerings will enable customers to manage content across the enterprise securely and compliantly, decommission legacy apps to make information more available for complete analysis and insight, and create new ways to work across any device. Open Text helps organizations find, use and share business information from both structured forms and free-form sources.
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The company in June agreed to buy HP Inc’s customer management software business.
