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OpenText to Strategically Divest Non-Core Unit for US$163 Million
Prnewswireยท 2025-10-02 21:45
Core Viewpoint - OpenText Corporation has reached a definitive agreement to divest its on-premise solution eDOCS, part of its Analytics portfolio, to NetDocuments for US$163 million in cash, aligning with its strategy to focus on core business areas and reduce debt [1][2][3]. Summary by Sections Transaction Details - The divested business, eDOCS, is part of OpenText's Analytics product group, primarily serving legal professionals, and generated approximately US$30 million in annual revenue for the fiscal year ending June 30, 2025 [2]. - The transaction is expected to close by early 2026, pending customary approvals and closing conditions [4]. Strategic Implications - The divestiture supports OpenText's strategy to enhance shareholder value by rationalizing non-core assets and focusing on secure information management for AI, which is seen as a driver for future revenue growth [3]. - The proceeds from the sale will be utilized to reduce the company's outstanding debt, reinforcing its capital allocation framework [2][3]. Transition and Integration - Under the agreement, all software, customer contracts, associated services, and employees related to eDOCS will be integrated into NetDocuments, ensuring a seamless transition for users [4].