Waterloo-based information management company Open Text has announced that it has agreed to acquire British software giant Micro Focus for US$6 billion all-cash.
Open Text is offering 532 pence (approximately US$6.30) per Micro Focus share. That’s 99% above Thursday’s close.
Open Text said it will finance the acquisition with US$4.6 billion in new debt, US$1.3 billion in cash and a US$600 million withdrawal from an existing revolving credit facility.
T.The $6 billion acquisition price, which includes Micro Focus’s cash and debt ($4.4 billion of debt according to its latest earnings report), represents 2.2 times Micro Focus’ pro forma trailing twelve months (TTM) revenues and Micro Focus’s pro forma 6.3 times the TTM Adjusted EBITDA (earnings before interest, tax, depreciation and amortization).
According to Open Text, the acquisition is expected to generate $800 million in total cost synergies, including Micro Focus’ $300 million cost savings program.
The transaction is expected to close in the first quarter of 2023.
OpenText CEO and CTO Mark J. Barrenechea.
Open Text Acquires Micro Focus in US$6 Billion All-Cash Deal
Source link Open Text Acquires Micro Focus in US$6 Billion All-Cash Deal