Open Text, a global leader in Enterprise Information Management (EIM), has entered into a definitive agreement to acquire Dell EMC’s enterprise content division for $1.62 billion. Under terms of the deal, the software, associated services, and employees in the division will be integrated into Open Text.
The companies also say they plan to negotiate a strategic commercial partnership to expand customer offerings. Open Text says the deal strengthens its enterprise information management business.
“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,” said Chief Executive Mark Barrenechea.
The purchase price is 2.7 times the division’s revenue of $599 million in its 2015 financial year.
The deal is expected to close within 90 to 120 days and is subject to regulatory approval and customary closing conditions.