Open Text Corp to buy cloud company GXS Group Inc for $1.17-billion
November 5, 2013
Grazed from FinancialPost. Author: Editorial Staff.
Business software company Open Text is buying cloud-technology provider GXS Group in a cash-and-stock deal valued at approximately $1.17 billion. Open Text, based in Waterloo, Ont., will pay about $1.07 billion in cash and $100 million of its stock. When the deal closes, part of the cash portion of the purchase price will be used to repay some GXS debt.
GXS stockholders are expected to own about 2.1% to 2.4% of Open Text’s stock once the acquisition is complete. The company said the deal will expand OpenText’s information exchange and cloud service offerings, and expects the merged business will serve more than 80,000 customers once the transaction closes…
Open Text sells software and data management technology used by companies to manage their electronic documents. GXS Group Inc., a business-to-business service provider, will become a subsidiary of Open Text Corp…
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