Leading enterprise information management (EIM) software provider OpenText Corporation (NASDAQ: OTEX) on Monday, September 12, announced that it has signed a definitive agreement for the acquisition of the Enterprise Content Division (ECD) of multinational corporation Dell EMC.
Under the agreement, the Canadian information technology corporation will pay $1.6 billion for the content division, with the transaction expected to close within the next 90 to 120 days. Once the acquisition process is complete, all of the employees, software and associated services of Dell EMC’s ECD will be integrated into OpenText.
The acquisition will include EMC’s Documentum™, a well-known enterprise content management platform, as well as the LEAP™ and InfoArchive™ product families – products that are expected to bring added value to OpenText’s EIM services with an enhanced information lifecycle management and enterprise content management portfolio. The move is also expected to further strengthen OpenText’s customer base, geographical coverage, managed services and overall industry offerings in fields such as healthcare, the public sector, life sciences, finance, engineering and energy.
OpenText CEO and CTO Mark J. Barrenechea welcomed the deal, saying that the acquisition will strengthen OpenText’s position as an EIM leader and bring new opportunities for the corporation via the ECD and Documentum platform. In turn, Dell EMC President David Goulden said his corporation was pleased that the value ECD provides for customers will be enhanced as part of OpenText. He explained that OpenText shares Dell EMC’s vision for digital business transformation, its passion for the role of information and its commitment to delivering world-class customer services.
OpenText and Dell EMC also announced plans to negotiate and develop a strategic commercial partnership with the goal of expanding customer offerings so as to better serve their needs. No other details have yet been provided about what this partnership will entail.
For the ECD acquisition, OpenText was advised by British multinational banking company Barclays, which also offered a debt commitment of $1 billion in support of the transaction. Dell EMC was advised by multinational financial corporation Morgan Stanley & Co. LLC.
The move comes just days after Dell, Inc. and EMC Corporation completed their merger to form Dell Technologies, Inc. (NYSE: DVMT). The September 7 merger is the result of Dell’s acquisition of EMC for $67 billion, the largest technology merger in history. As a result of the transaction, EMC Corporation was renamed Dell EMC.
OpenText is the largest independent provider of enterprise information management software. The Canadian corporation made several smaller acquisitions over the last few months, such as the purchase of customer communication management assets from HP, Inc. (NYSE: HPQ) in June and of information analytics company Recommind, Inc. in July.
For more information, visit www.OpenText.com
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