Enterprise Information Management technology provider OpenText continued with its track record of growth by acquisition, this week announcing a definitive agreement of intent to acquire the former enterprise content division of newly merged Dell and EMC, including the addition of Documentum. The announcement comes shortly after Dell and EMC completed their substantial merger to form Dell Technologies.
The all-cash deal is valued at $1.6 billion, and is roughly 2.7 times ECD FY15 revenue of $599M. The agreement further calls for the software, associated services, and employees of ECD to be integrated into OpenText. Management expects the acquisition to clear in 90-120 days, subject to regulatory approvals and customary closing conditions.
The acquisition is expected to deepen OpenText’s EIM offering with a substantial portfolio focused on Enterprise Content Management (ECM) and Information Life Cycle Management. It further includes the acquisition of Dell EMC’s ECD offerings from the Documentum, InfoArchive, and LEAP product families. According to company statements, 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.
OpenText further declared that the newly acquired technology will be available as on-premise, cloud, or hybrid architectures.
No doubt, this EIM technology provider continues to make substantial investments in acquisitions of related technology, sometimes taking advantage of existing business opportunities. In the fourth fiscal quarter ending in June, other noted acquisitions included:
- Definitive agreement to acquire Customer Communications Management assets from HP Inc.
- Definitive agreement to acquire Recommind, Inc.
- Definitive agreement to acquire and close acquisition of ANXe Business Corporation
- Definitive agreement to acquire, and close acquisition of certain customer experience software and services assets and liabilities from HP Inc.
At the close of FY16 in June, OpenText’s long-term debt was recorded as $2.1 billion while total revenues were $1.8 billion. The task at-hand is the integration of all of this collective technology within OpenText’s new Cloud-based suite of EIM support.