The rash of mergers and acquisitions in the IT industry continues with the news today that OpenText has entered into a definitive agreement to acquire Dell EMC’s enterprise content division (ECD), including Documentum, for $1,62-billion.
ECD offers a suite of leading enterprise content management solutions with deep industry focus, including the Documentum, InfoArchive and LEAP product families.
Under the terms of the agreement, the software, associated services, and employees of ECD will be integrated into OpenText.
The acquisition is expected to deepen OpenText’s EIM offering with a substantial portfolio focused on enterprise content management (ECM) and information lifecycle management. With strong industry offerings, expertise and footprints in healthcare, life sciences, and public sector, plus additional capacity in financial services, energy, and engineering, OpenText will further strengthen its vertical offerings, customer base, managed services, and geographical coverage.
OpenText and Dell EMC also announced their intention to negotiate and enter into a strategic commercial partnership to expand customer offerings and to better serve customer needs.
“We are at the beginning of the Digital revolution where extreme connectivity, automation, and computing are converging,” says OpenText CEO and chief technology officer Mark Barrenechea. “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.
“We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText.”
David Goulden, president of Dell EMC, comments: “ECD provides great value for customers, and we are pleased that this will be enhanced as part of OpenText.
“In determining the best long-term future for ECD, we wanted to create a business with a leading position in enterprise information management. OpenText shares our vision for the transformation to digital business, our passion for the role of information in the digital world, and the breadth of capabilities to help our customers realize that vision.
“Importantly, OpenText also shares our commitment to deliver a world-class total customer experience. Today’s news is great for all stakeholders.”