OpenText Buys Dell EMC's Enterprise Content To Accelerate Digital Transformation

Open Text Corporation OTEX disclosed Monday it struck a definitive deal to buy Dell EMC's Enterprise Content Division (ECD) to accelerate digital transformation. This included Documentum. The purchase price of $1.62 billion represented 2.7 times ECD F revenue of $599 million for the fiscal year 2015.

The company indicated ECD is a provider of a suite of Enterprise Content Management solutions. This included the Documentum, InfoArchive, and LEAP product families.

OpenText indicated that the agreement enabled the ECD's employees, software, and associated services to be integrated with it. The company expects the acquisition to deepen its EIM offering with a considerable portfolio on Enterprise Content Management (ECM) and Information Life Cycle Management.

The company's CEO and CTO, Mark Barrenechea, commented,"This acquisition further strengthens OpenText as a leader in Enterprise Information Management, enabling customers to capture their Digital future and transform into information-based businesses. We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText."

Open Text was up about 8 percent at $64.58.