OpenText closes Dell EMC's Enterprise Content Division acquisition

Enterprise Information Management (EIM) platform, OpenText, has announced the completion of its acquisition of Dell EMC’s Enterprise Content Division (ECD), including Documentum for $1.62 billion. The company had announced the intent to buy the Dell EMC’s ECD in September 2016 as it offered a suite of Enterprise Content Management solutions with deep industry focus, including Documentum, InfoArchive and LEAP product families. With this acquisition the EIM provider stated that its industry offerings, expertise and footprints in healthcare, life sciences, and public sector, along with additional capacity in financial services, energy, and engineering, will be further strengthened. The acquisition will also spread its geographical coverage of its vertical offerings, customer base and managed services. “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 Mark J Barrenechea, CEO and CTO, OpenText.

“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.”

According to OpenText the sources of funds used were approximately $650 million of cash on hand, $585 million net proceeds from an underwritten public offering of OpenText’s common shares, $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. The company also states that a market and financial update will be provided during the OpenText second quarter fiscal year 2017 financial results call on February 2, 2017.