Canada’s OpenText to buy British software firm Micro Focus in $6 billion deal
2022.08.26 01:30
FILE PHOTO: A sign stands outside the offices of Micro Focus after they and Hewlett Packard Enterprise Co announced that Hewlett Packard Enterprise Co will spin off and merge its non-core software assets with Britain’s Micro Focus International in a deal
(Reuters) -Canadian software company OpenText said on Thursday it would acquire Britian’s Micro Focus International (NYSE:MFGP) Plc in a deal valued at $6 billion, including debt, in a push to expand its enterprise information management business.
OpenText will pay 532 pence ($6.30) in cash for each Micro Focus share and the deal is expected to close in the first quarter of 2023.
Micro Focus helps customers maintain and integrate legacy IT technology, a business it has grown by acquiring legacy technology such as mainframe computer software used by banks, retailers and airlines.
Waterloo-based OpenText, one of Canada’s largest software makers, said it expects cost synergies of $400 million after the deal closes.
The company’s U.S-listed shares were down 1% in after-hours trading on Thursday.
($1 = 0.8448 pounds)
