Micro Focus and OpenText agree to a €6 billion acquisition. Micro Focus’ share price rose by more than 90 percent after the announcement.
Micro Focus is one of the world’s largest software vendors. The organization develops solutions for application modernization, IT operations management and more. Micro Focus’ security division is known as CyberRes. Annual revenue totaled nearly €3 billion in 2021.
OpenText provides software as well. The offering includes solutions for content management, text analytics and process automation. 90 percent of all Fortune 100 companies use one or more OpenText software products.
OpenText recently made a €6 billion bid to acquire Micro Focus. The board of Micro Focus agreed. The amount is almost twice the market value of Micro Focus. OpenText clearly has high expectations.
Micro Focus’ share price rose by more than 90 percent after the announcement. OpenText and Micro Focus expect to complete the acquisition in the first quarter of 2023. The deal isn’t final yet. Approval from shareholders and market regulators is required.
Micro Focus and OpenText
OpenText sees Micro Focus as an investment. If the acquisition is greenlit, Micro Focus’ billion-dollar revenue flows through OpenText’s coffers. In turn, Micro Focus is attracted to the transaction amount. The organization has a debt of €4.4 billion. OpenText is willing to pay off the debt. Micro Focus cannot ignore the offer.
“I look forward to welcoming Micro Focus customers, partners and employees to OpenText”, OpenText CEO Mark J. Barrenechea shared in a statement. “Upon completion of the acquisition, OpenText will be one of the world’s largest software and cloud businesses with a tremendous marquee customer base, global scale and comprehensive go-to-market.”