In a statement issued yesterday Open Text, which owns 88% of the German content management software provider, said the move is part of a three-part plan to improve profitability and operational efficiency by bringing Ixos operations more closely in line with its own.
These actions demonstrate movement towards an operating model which is in-line with that of Open Text, said Tom Jenkins, CEO of Waterloo, Ontario-based Open Text.
Around 130 Ixos jobs will go under the restructuring scheme, for which Ixos will incur charges of $17.2m (14m Euros) in its third quarter.
About half of the jobs cut will be in Germany, though Open Text says it remains committed to maintaining a strong operational base in Germany.
As part of the cuts Ixos will delist from Nasdaq and to move its German listing from the prime to the general standard.
Jenkins assured concerned shareholders that the charge will not impact the operating results of the combined businesses.
Previously issued guidance from Open Text remains unchanged as a result of this announcement by IXOS.
Open Text originally tabled its $240m bid for Munich-based Ixos last October.
Open Text has absorbed around 20 companies since its inception. Ixos is by far its biggest buy to date and will challenge the integration skills of the company on both the product and corporate fronts.
This article is based on material originally published by ComputerWire
