OpenText To Acquire Micro Focus In Huge $6 Billion Deal

guest · Sep 3, 2022

Upon completion of the acquisition, OpenText will be one of the world’s largest software and cloud businesses
By Joseph F. Kovar - August 25, 2022

‘Upon completion of the acquisition, OpenText will be one of the world’s largest software and cloud businesses with a tremendous marquee customer base, global scale and comprehensive go-to-market,’ said OpenText CEO and CTO Mark Barrenechea.
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Information management software vendor OpenText Thursday said it plans to acquire fellow software and cybersecurity specialist Micro Focus in a deal that values the latter at about $6 billion.

The acquisition, should it close as expected early next year, will create one of the world’s largest information management and security businesses with a total annualized revenue of about $6.2 billion, OpenText said.
While both companies have information management at their core, they do have some significant differences that limit the overlap between the two.
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Waterloo, Ontario-based OpenText reported fiscal year 2022 revenue of $3.5 billion, including cloud revenue of $1.5 billion, customer support revenue of $1.3 billion, licensing revenue of $350 million and professional services revenue of $270 million.

Newbury, U.K.-based Micro Focus reported total annual revenue of $2.7 billion, with maintenance accounting for $1.7 billion, SaaS and other recurring revenue of $136 million, consulting revenue of $169 million and license revenue of $656 million.
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North America is the largest market for both companies.

Together, the two companies do business with 98 of the 100 largest companies in the world, including 20 of the top 20 manufacturing, oil and gas, telecom, federal governments, financial services, retail, automotive, health care and transportation companies worldwide.
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Press Release: OpenText to Acquire Micro Focus International plc

Creating One of the Largest Software & Cloud Businesses Enabling Digital Transformations
Expands Information Management Market Opportunity to $170 Billion
WATERLOO, ON, Aug. 25, 2022 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today announced that it has reached agreement on the terms of a recommended all-cash offer to be made by Open Text Corporation (the Company), through its wholly-owned subsidiary, OpenText UK Holding Limited (Bidco), to acquire the entire issued and to be issued share capital of Micro Focus (LSE: MCRO) and (NYSE (ADS): MFGP) at a price of 532 pence per share (the Acquisition), implying an enterprise value of approximately $6.0 billion on a fully diluted basis.

The terms and conditions of the Acquisition are set out below and in a joint announcement released by OpenText and Micro Focus (the Announcement) in the UK today under Rule 2.7 of the UK City Code on Takeovers and Mergers (the Takeover Code). Capitalized terms not defined in this press release have the meanings given in the Announcement.
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OpenText To Acquire Micro Focus In Huge $6 Billion Deal

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