OpenText Completes Divestiture of Application Modernization and Connectivity (AMC) Business to Rocket Software for $2.275B
Rhea-AI Summary
OpenText has completed the divestiture of its Application Modernization and Connectivity (AMC) business to Rocket Software for $2.275 billion, aiming to reduce debt by $2 billion. The company plans to focus on Information Management, Cloud, Security, and AI markets to drive innovation and growth.
Positive
Successfully completed divestiture of AMC/Mainframe business, boosting liquidity.
Reduction of debt by $2 billion enhances financial stability.
Focus on Information Management, Cloud, Security, and AI markets for future growth and innovation.
Potential expansion of capital allocation program for shareholders.
Negative
- None.
News Market Reaction – OTEX
On the day this news was published, OTEX gained 0.11%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
OpenText to Reduce Debt by
"We are pleased to complete the divestiture of our AMC/Mainframe business to Rocket Software," said Mark J. Barrenechea, OpenText CEO & CTO. "We intend to use the net proceeds from the divestiture to reduce our debt by
Additional details on the impact of the divestiture to the remainder of Fiscal 2024 will be outlined as part of the Company's quarterly earnings results scheduled for May 2, 2024.
About OpenText
OpenText, The Information Company™, enables organizations to gain insight through market leading information management solutions, powered by OpenText Cloud Editions. For more information about OpenText (NASDAQ: OTEX, TSX: OTEX) visit opentext.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website (https://investors.opentext.com). Such social media channels may include the Company's or our CEO's blog, X, formerly known as Twitter, account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.
Note: All dollar amounts in this press release are in
OTEX-MNA
Copyright ©2024 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information visit: http://www.opentext.com/who-we-are/copyright-information.
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SOURCE Open Text Corporation
FAQ
What business did OpenText divestiture to Rocket Software?
OpenText divested its Application Modernization and Connectivity (AMC) business to Rocket Software.
How much did OpenText receive for the divestiture?
OpenText received $2.275 billion for the divestiture.
What is the purpose of the divestiture for OpenText?
The purpose of the divestiture is to reduce debt by $2 billion and focus on Information Management, Cloud, Security, and AI markets for growth.
When will OpenText provide more details on the divestiture impact?
Additional details on the impact of the divestiture will be provided in the Company's quarterly earnings results scheduled for May 2, 2024.