WASHINGTON (Pakistan Point News / Sputnik - 26th August, 2022) Canadian software giant OpenText said it will acquire Britain's Micro Focus International in a deal valued at $6 billion.
"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 company said in a press release on Thursday.
OpenText will pay $6.30 in cash for each Micro Focus share, the statement reads, adding that the $6 billion deal between both companies takes into consideration Micro Focus debts.
Micro Focus is one of the world's largest software companies and generated around $2.7 billion in revenues in a year-to-year basis, between April 2021-2022.
Canadian OpenText is among the country's most important software companies. The fusion of both giants would create a potential $170 billion market.
"Micro Focus brings meaningful revenue and operating scale to OpenText, with a combined total addressable market (TAM) of $170 billion," OpenText CEO Mark Barrenechea said in the release, adding that the company would allow stronger operations and generate important cash flows.
The multi-billion-dollar deal is set to be officialised in the first months of 2023, the statement added.
