Last week PaperFree partner OpenText announced definitive plans to acquire Guidance Software, a Pasadena-based developer of forensic security solutions. The acquisition adds to OpenText's product offerings, specifically its Discovery line that that offers search, extraction, classification, review, and analysis tools for enterprises. This also adds additional information security options to OpenText with new digital investigation, forensic security, and endpoint solutions. Guidance Software is well known for its EnCase product, which OpenText describes as the "gold standard" in forensic security.
Under the agreement OpenText will offer to purchase all common shares Guidance Software shares for $7.10 each in cash, for a total of $240 million, and then an additional offer to purchase remaining untendered shares. Factoring in Guidance Software's cash on hand, the value of the enterprise is approximately $222 million. OpenText intends to commence the acquisition in early August and plans to fund the transaction via cash on hand plus short term financing. The sale is expected to close in the third quarter of 2017.
This article was based on a July 26, 2017 OpenText press release. Read the press release here.