OpenText acquires Micro Focus for $8.2bn
Information management solution provider OpenText has completed the US$5.8 billion ($8.2 billion) acquisition of Micro Focus International, a software technology and services company based in the UK.
The purchase price represents a multiple of 2.3x Micro Focus’s annual revenue and 6.7x its adjusted EBITDA.
OpenText has revealed it expects the acquisition to be immediately accretive to the company’s FY23 adjusted EBITDA. Micro Focus is expected to be transitioned to the OpenText operating model within six full quarters.
OpenText CEO and CTO Mark J Barrenechea said MicroFocus’s position as a leading provider of mission-critical software technology and services with a focus on digital transformation made the company an ideal acquisition partner, and will allow OpenText to expand its capabilities.
“With this acquisition, OpenText’s corporate mission expands to help enterprise professionals secure their operations, gain more insight into their information, and better manage an increasingly hybrid and complex digital fabric with a new generation of tools that include Cybersecurity, Digital Operations Management, Applications Modernisation & Delivery and AI & Analytics,” he said.
“This new generation of information management software will help organisations accelerate their digital transformation and drive growth while reducing costs.”
The combined company now plans to reduce its workforce by around 8% to achieve planned cost synergies of around US$400 million.
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