- OpenText ( NASDAQ: OTEX ) through its wholly-owned subsidiary, OpenText UK Holding acquires the entire issued and to be issued share capital of Micro Focus ( NYSE: MFGP ) at a price of 532 pence/share, implying an enterprise value of ~$6B.
- 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.
- Micro Focus brings meaningful revenue and operating scale to OpenText, with a combined total addressable market of $170B.
- "We expect Micro Focus to be immediately accretive to our adjusted EBITDA." said OpenText CEO & CTO Mark J. Barrenechea.
- All-cash consideration for the Acquisition to be funded by $4.6B in new debt, $1.3B in cash, and a $600M draw on existing revolving credit facility.
- MFGP +95.21% premarket to $6.11.
For further details see:
OpenText to acquire Micro Focus International for 532 pence/share