WATERLOO, Ontario, Jan. 23, 2017 /CNW/ -- OpenTextâ„¢ (NASDAQ: OTEX,
TSX: OTC), a global leader in Enterprise Information Management
(EIM), today announced that it has completed the closing of the
previously announced acquisition of Dell EMC's Enterprise Content
Division, including Documentum.
"Customers are rethinking their enterprise platforms to better
compete in the age of digital. EIM is the key platform to enable
that transformation, and our acquisition of Documentum and the
Enterprise Content Division from DELL
EMC significantly strengthens our market leading position,"
said OpenText CEO & CTO Mark J.
Barrenechea. "We are pleased to welcome 5,000 marquee
customers, 2,000 employees and over 300 partners to OpenText.
Customers are responding very well to our Release 16 and this
acquisition extends our leadership in content services, information
archives, key verticals, and the Cloud."
Financing Details
The purchase price for the
acquisition was U.S. $1.62 billion.
The sources of funds used were approximately U.S. $650 million of cash on hand, U.S. $585 million net proceeds from an underwritten
public offering of OpenText's common shares, U.S. $254 million net proceeds from a reopening of
OpenText's 5.875% senior notes with the remaining funds drawn under
OpenText's existing revolving credit facility.
Following the public offering of common shares in December 2016 in connection with the acquisition,
OpenText had 131,500,448 common shares outstanding as at
December 31, 2016, which does not yet
reflect the 2-for-1 share split previously announced.
OpenText's common shares are anticipated to commence trading on a
post-split basis on Wednesday, January 25,
2017.
A market and financial update will be provided during the
OpenText second quarter fiscal year 2017 financial results call on
February 2, 2017.
About OpenText OpenText is the largest independent
software provider of Enterprise Information Management (EIM). For
more information please visit www.opentext.com.
Cautionary Statement Regarding Forward-Looking
Statements Certain statements in this press release 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 and are subject to important assumptions, risks and
uncertainties that are difficult to predict, and the actual outcome
may be materially different. 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
Notes: (1) All dollar amounts in this press release
are in US dollars unless otherwise indicated.
OTEX-MNA
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SOURCE Open Text Corporation