OTEX - Is OpenText a Must-Buy Stock?
As more companies transfer operations to the cloud and use it for day-to-day computing needs as well as securely storing critical data, an information management software company like OpenText (NASDAQ: OTEX) becomes an increasingly valuable resource. The Canadian company offers its customers online products and services aimed at improving operations, including digital process automation and machine-assisted decision making.
One way OpenText has been able to expand its offerings to clients is by acquiring companies that fill a needed niche. Here's a bit more about OpenText's latest efforts to expand.
OpenText last month revealed its ninth acquisition when it announced it was buying data protection specialist Carbonite (NASDAQ: CARB) for $1.42 billion, or $23 a share. OpenText paid a hefty 78% premium from where Carbonite's shares were in early September when rumors first emerged about a possible deal. However, it's clear OpenText thinks the premium price is worth it, given the value that Carbonite can offer.