Acquisition to Strengthen IoT and Automotive Digital Supply
Chain
WATERLOO, Ontario, June 5, 2017 /CNW/ -- OpenText™ (NASDAQ:
OTEX) (TSX: OTEX), a global leader in Enterprise Information
Management (EIM), announced today that it has entered into a
definitive agreement to acquire Covisint Corporation (NASDAQ:
COVS), the leading Cloud platform for building Identity,
Automotive, and Internet of Things (IoT) applications.
The acquisition is expected to deepen OpenText's EIM offering
with a cloud-based IoT platform-as-a-service and expand OpenText's
presence in the Automotive industry through strong customer
relationships and strategic partnerships for supply chain
collaboration. Covisint will be integrated into the OpenText
Business Network, a portfolio of cloud solutions and software that
facilitates efficient, secure, and compliant information flows
between organizations.
Terms of the Agreement
The transaction purchase price
of $2.45 per share is approximately
$103 million of market value, or
$75 million of enterprise
value. OpenText intends to fund the transaction with cash on
hand. The transaction is expected to close in the third
quarter of calendar 2017 and is subject to customary closing
conditions, including approval by shareholders of Covisint.
(1)
About OpenText
OpenText enables the digital world, creating a better way for
organizations to work with information, on premises or in the
cloud. For more information about OpenText (NASDAQ: OTEX, TSX:
OTEX) visit opentext.com.
Cautionary Statement Regarding Forward-Looking
Statements Certain statements in this press
release, including statements regarding OpenText's plans,
objectives, expectations and intentions relating to the
acquisition, the acquisition's expected contribution to OpenText's
results, financing and closing of the acquisition, as well as the
expected timing and benefits of the acquisition and preservation of
credit ratings, may contain words considered forward-looking
statements or information under applicable securities laws. These
statements are based on OpenText's current expectations, estimates,
forecasts and projections about the operating environment,
economies and markets in which the company operates. These
statements are subject to important assumptions, risks and
uncertainties that are difficult to predict, and the actual outcome
may be materially different. OpenText's assumptions, although
considered reasonable by the company at the date of this press
release, may prove to be inaccurate and consequently its actual
results could differ materially from the expectations set out
herein. For additional information with respect to risks and other
factors, which could occur, see OpenText's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other securities filings
with the SEC and other securities regulators. Unless otherwise
required by applicable securities laws, OpenText disclaims any
intention or obligations to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Copyright ©2017 Open Text. OpenText is a trademark or registered
trademark of Open Text. The list of trademarks is not exhaustive of
other trademarks. Registered trademarks, product names, company
names, brands and service names mentioned herein are property of
Open Text. All rights reserved. For more information, visit:
http://www.opentext.com/who-we-are/copyright-information.
OTEX-MNA
Notes: (1) All dollar amounts in this
press release are in US dollars unless otherwise
indicated.
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SOURCE Open Text Corporation