OpenText Inks Agreement to Acquire Dell EMC's Enterprise Content Division for $1.62 Billion
OpenText Corporation has announced plans to acquire Dell EMC's Enterprise Content Division (ECD) for $1.62 billion. ECD offers a suite of enterprise content management solutions with deep industry focus, including the Documentum, InfoArchive, and LEAP product families.
The purchase price is $1.62 billion, which is 2.7 times ECD FY15 revenue of $599 million. The transaction is anticipated to close within 90 to 120 days.
OpenText's announcement of the planned purchase of ECD from Dell EMC closely follows the Dell acquisition of EMC. Completed last week, that transaction created a $74 billion company with a technology portfolio spanning hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity. Rebranded as Dell Technologies after the EMC merger, Dell said then that its Infrastructure Solutions business would be known as Dell EMC.
According to OpenText, the ECD acquisition will allow customers to accelerate their digital transformation with a fully integrated enterprise information management portfolio.
Observing that the industry is at the beginning of a digital revolution with extreme connectivity, automation, and computing converging, OpenText CEO and CTO Mark J. Barrenechea, said this acquisition will serve to further strengthen OpenText's position in the enterprise information management space.
Under the terms of the agreement, the software, associated services, and employees of ECD will be integrated into OpenText, which OpenText says, will deepen its enterprise information management offering with a portfolio focused on enterprise content management and information lifecycle management.
With the combination of industry offerings, expertise and footprints in healthcare, life sciences, and public sector, and additional capacity in financial services, energy, and engineering, OpenText says it will further strengthen its vertical offerings, customer base, managed services, and geographical coverage.
OpenText and Dell EMC also announced their intention to negotiate a strategic commercial partnership to expand customer offerings and to better serve customer needs.
Acquisition extends OpenText's position in content services, information archives, key verticals, and the cloud
Solution is designed to help organizations integrate fragmented content repositories