View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Hardware
September 13, 2016

Newly merged Dell-EMC sells Enterprise Content Division to OpenText

The acquisition will include Documentum, InfoArchive and LEAP.

By Alexander Sword

OpenText is acquiring Dell-EMC’s Enterprise Content Division (ECD) for $1.62 billion.

The acquisition will cover product families and solutions including Documentum, InfoArchive and LEAP.

The software, services and employees of ECD will be integrated into OpenText, bolstering its enterprise information management capabilities. OpenText is aiming to complete the integration in 12 months and for the acquisition to be immediately accretive to earnings.

The transaction should close between 90 and 120 days, subject to regulatory approval.

Dell-EMC and OpenText also intend to negotiate and form a strategic commercial partnership.

Barclays acted as financial advisor for the transaction, providing a $1 billion debt commitment in support of the transaction.

The sell-off follows soon after the merger of Dell and EMC, completed in September 2016, which created the world’s largest privately-controlled tech company, Dell Technologies, worth $74 billion.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

The acquisition was first announced in October 2015 when Dell announced its intention to buy EMC for $67 billion.

As a combined company, the rebranded Dell Technologies comprises Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware.

“We are at the beginning of the Digital revolution where extreme connectivity, automation, and computing are converging,” said OpenText CEO and CTO Mark J. 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.”

David Goulden, President, Dell-EMC said: “In determining the best long-term future for ECD, we wanted to create a business with a leading position in Enterprise Information Management.”

Goulden said that OpenText shared Dell’s vision for the transformation to digital business and its “passion for the role of information in the digital world”. It also said OpenText had the breadth of capabilities to “help customers realise that vision.”

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU