OpenText to Reduce Debt by $2 Billion
WATERLOO, ON, May 1, 2024
/PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX),
today announced that it has successfully completed the divestiture
of its AMC/Mainframe business to Rocket Software, Inc., a Bain
Capital portfolio company ("Rocket Software"), for $2.275 billion in cash before taxes, fees and
other adjustments.
"We are pleased to complete the divestiture of our AMC/Mainframe
business to Rocket Software," said Mark J.
Barrenechea, OpenText CEO & CTO. "We intend to use the
net proceeds from the divestiture to reduce our debt by
$2 billion and lower our net leverage
ratio to under 3x. Further, the divestiture allows the
company to focus on the future of Information Management, which is
innovation and growth in the Cloud, Security, and AI markets and
the opportunity to expand our capital allocation program for
shareholders."
Additional details on the impact of the divestiture to the
remainder of Fiscal 2024 will be outlined as part of the Company's
quarterly earnings results scheduled for May
2, 2024.
About OpenText
OpenText, The Information Company™, enables organizations to
gain insight through market leading information management
solutions, powered by OpenText Cloud Editions. For more information
about OpenText (NASDAQ: OTEX, TSX: OTEX) visit opentext.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release may contain words
considered forward-looking statements or information under
applicable securities laws. These statements are based on
OpenText's current expectations, estimates, forecasts and
projections about the operating environment, economies and markets
in which the company operates. These statements are subject to
important assumptions, risks and uncertainties that are difficult
to predict, and the actual outcome may be materially different.
OpenText's assumptions, although considered reasonable by the
company at the date of this press release, may prove to be
inaccurate and consequently its actual results could differ
materially from the expectations set out herein. For additional
information with respect to risks and other factors which could
occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other securities filings with the SEC and other
securities regulators. Readers are cautioned not to place undue
reliance upon any such forward-looking statements, which speak only
as of the date made. Unless otherwise required by applicable
securities laws, OpenText disclaims any intention or obligations to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Further,
readers should note that we may announce information using our
website, press releases, securities law filings, public conference
calls, webcasts and the social media channels identified on the
Investors section of our website (https://investors.opentext.com).
Such social media channels may include the Company's or our CEO's
blog, X, formerly known as Twitter, account or LinkedIn account.
The information posted through such channels may be material.
Accordingly, readers should monitor such channels in addition to
our other forms of communication.
Note: All dollar amounts in this press release are in U.S.
dollars unless otherwise indicated.
OTEX-MNA
Copyright ©2024 Open Text. OpenText is a trademark or
registered trademark of Open Text. The list of trademarks is not
exhaustive of other trademarks. Registered trademarks, product
names, company names, brands and service names mentioned herein are
property of Open Text. All rights reserved. For more
information visit:
http://www.opentext.com/who-we-are/copyright-information.
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SOURCE Open Text Corporation