Canadian Software Company OpenText to Acquire UK-based Micro Focus in $6 Billion Deal – Statement

WASHINGTON (UrduPoint News/Sputnik – August 26, 2022) Canadian software giant OpenText has announced that 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 an all-cash recommended offer to be made by Open Text Corporation (the Company), through through its wholly owned subsidiary, OpenText UK Holding Limited (Bidco), to acquire all of the 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), involving 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 said, adding that the $6 billion agreement between the two companies takes into account Micro Focus’ debts.

Micro Focus is one of the largest software companies in the world and generated approximately $2.7 billion in revenue year-over-year between April 2021 and 2022.

Canadian OpenText is one of the country’s largest software companies. The merger of the two giants would create a potential market of 170 billion dollars.

“Micro Focus brings significant revenue and scale of operation 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 enable stronger operations and generate significant cash flow.

The multi-billion dollar deal is expected to be formalized in the early months of 2023, the statement added.