OpenText to Buy Dell EMC's Enterprise Content Unit for $1.62 Billion
The move will expand OpenText's information management capabilities while enable Dell to shed a profitable but non-essential business.OpenText is buying Dell EMC's enterprise content division in a $1.62 billion deal that expands the company's capabilities in enterprise information management while giving Dell Technologies more cash to help it pay down debt following the close last week of its $60 billion-plus acquisition of EMC. The deal for the enterprise content division (ECD), which OpenText officials announced Sept. 12, is the latest in a string of acquisitions the company has made in recent months as it looks to bolster its enterprise information management (EIM) portfolio, particularly in enterprise content management (ECM) and information lifecycle management. It also comes five months after reports surfaced that Dell was looking to sell EMC's content management division—which includes the Documentum, InfoArchive and LEAP product families—to shed businesses outside of its core efforts and to lower the overall debt it will incur from the EMC deal. The deal with OpenText is expected to close in three to four months. "When combined with existing OpenText products, these offerings will enable customers to manage content across the enterprise securely and compliantly, decommission legacy apps to make information more available for complete analysis and insight, and create new ways to work across any device," President and CEO Mark Barrenechea wrote in a post on the company blog. "In keeping with our flexible deployment options, they will be available as on-premises, cloud or hybrid architectures."
OpenText is a $1.9 billion company with 8,600 employees and more than 100,000 customers. In April, the company spent about $170 million to buy certain customer experience software and services assets from HP Inc., including a digital experience management platform for web content management, a digital asset management offering and an intelligent workforce optimization product. Two months later, OpenText bought customer communications management technologies from HP, including Exstream, Output Management, TeleForm and LiquidOffice for everything from process automation to document delivery offerings.