Information management software vendor OpenText Thursday said it plans to acquire fellow software and cybersecurity specialist Micro Focus in a deal that values the latter at about US$6 billion.
The acquisition, should it close as expected early next year, will create one of the world’s largest information management and security businesses with a total annualized revenue of about US$6.2 billion, OpenText said.
While both companies have information management at their core, they do have some significant differences that limit the overlap between the two.
Waterloo, Ontario-based OpenText reported fiscal year 2022 revenue of US$3.5 billion, including cloud revenue of US$1.5 billion, customer support revenue of $1.3 billion, licensing revenue of $350 million and professional services revenue of $270 million.
OpenText focuses on four key areas, with digital experience accounting for 28 percent of its total revenue, content services accounting for 26 percent, business networks 24 percent and security 22 percent.
Newbury, U.K.-based Micro Focus reported total annual revenue of US$2.7 billion, with maintenance accounting for US$1.7 billion, SaaS and other recurring revenue of US$136 million, consulting revenue of US$169 million and license revenue of US$656 million.
The company has seven key focus areas, with IT operations accounting for 36 percent of total revenue, application development for 18 percent, storage and content 16 percent, security 14 percent, application infrastructure 7 percent, analytic platforms 6 percent, and portfolio management 4 percent.
North America is the largest market for both companies.
Together, the two companies do business with 98 of the 100 largest companies in the world, including 20 of the top 20 manufacturing, oil and gas, telecom, federal governments, financial services, retail, automotive, health care and transportation companies worldwide.
OpenText executives were not available to re ..
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