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.
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.”