By Information management company Open Text is acquiring software firm Micro Focus International in an all-cash deal totaling approximately $6 billion, including debt.
Open Text will fund the deal using $1.3 billion available cash, $4.6 billion in new debt and $600 million from an existing credit line, according to a Friday (Aug. 26) press release.
“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 Chief Technology Officer Mark J. Barrenechea in the release.
Barrenechea added that customers of both companies will reap the benefits of being able to speed up their moves toward digital transformation by “unlocking the full value of their information assets and core systems.” Open Text offers an integrated information management platform to help its clients organize, integrate and protect incoming and outgoing data and content flows.
“Micro Focus brings meaningful revenue and operating scale to OpenText, with a combined total addressable market (TAM) of $170 billion,” Barrenechea said in the release. “With this scale, we believe we have significant growth opportunities… Micro Focus will benefit from the OpenText Business System to create stronger operations and significant cash flows, and Micro Focus customers will benefit from the OpenText Private and Public Clouds.”
The news comes days after eBay bought myFitment, which offers software tools to sellers of automotive and powersports parts and accessories.
Read more: eBay Buys eCommerce Firm myFitment
MyFitment helps drive sales and avoid expensive returns by optimizing fitment data for listings, so customers can order the right parts and accessories.
The acquisition will bolster eBay’s parts and accessories categories and “offer an added layer of confidence for buyers by simplifying how they navigate inventory to find parts that fit their vehicle,” eBay Motors Vice President Chris Prill said in a press release.
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