Acquisition Allows OpenText to Offer Consumers a Broader Selection of Software Solutions in Multi-Channel Customer Engagement
WATERLOO, ON – 2016-6-20 – Open Text Corporation (NASDAQ: OTEX) (TSX: OTC), a global leader in Enterprise Information Management, announced today that it has entered into a definitive agreement to acquire the Customer Communications Management (CCM) assets from HP Inc. (NYSE: HPQ), including HP Exstream, HP Output Management, HP TeleForm and HP LiquidOffice for customer communications management, process automation and document delivery solutions. OpenText expects this acquisition to complement OpenText StreamServe, OpenText MediaManager, OpenText TeamSite, and OpenText MediaBin, and allow OpenText to better serve its customers by offering a wider set of CCM capabilities in areas including authoring, workflow and composition for multichannel document presentment and interactive communications.
OpenText and HP Inc. also announced today that they are exploring opportunities to work together in the future to expand their software solutions to customers and serve a broad range of customer needs.
Terms of the Agreement
The transaction purchase price is approximately USD $315 million. The solutions being acquired are expected to generate between USD $110 and USD $125 millions of annualized revenues, be immediately accretive to earnings and on the OpenText operating model by the end of first quarter F17. The transaction is expected to close in the first quarter of FY17 and is subject to customary regulatory approvals and closing conditions.