On September 12, 2016 OpenText announced that it had signed a definitive agreement to acquire the ECD arm of Dell EMC, an acquisition that includes product lines such as InfoArchive, LEAP, and most notably the comprehensive and powerful Documentum line. OpenText is an Ontario, Canada-based leader in Enterprise Information Management (EIM). This acquisition will strengthen OpenText's product offerings as well as allow it to serve a broader complement of industries who depend on enterprise content management solutions to power their businesses. Under the terms of the agreement the software, services, and employees of the ECD division will integrate into OpenText.
OpenText is excited about its new prospects, saying “We are at the beginning of the Digital revolution where extreme connectivity, automation, and computing are converging. This acquisition further strengthens OpenText as a leader in Enterprise Information Management, enabling customers to capture their Digital future and transform into information-based businesses. 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.” (Mark J. Barrenechea, OpenText CEO and CTO).
PaperFree continues its commitment to the enterprise content mangagement suites listed above and will remain a key OpenText partner in customizing and implementing these suites in the market.
About the Transaction:
- Purchase price of $1.62B (1)
- Purchase price is 2.7 times ECD FY15 revenue of $599M
- Targeting to onboard to the OpenText operating model within the first 12 months
- Targeting to be immediately accretive to earnings
- Expect the transaction to close within 90 to 120 days
- Subject to regulatory approvals and customary closing conditions