Documentum
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 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: OTC) visit opentext.com.
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