Open Text Acquiring GXS Group For $1.17 Billion
Open Text is a software company that is acquiring cloud-technology company GXS Group for around $1.17 billion in cash and stock. Open Text is paying $1.07 billion in cash and $100 million in stock. Part of the cash portion will be used to pay off GXS’ debt. GXS stockholders will own between 2.1% and 2.4% of Open Text stock after the acquisition is completed.
Open Text and GXS will have around a total of 80,000 customers combined after the transaction closes. GXS Group will become a subsidiary of Open Text.
Open Text anticipates that the transaction will add to their adjusted earnings in fiscal 2014 and they will be financing the cash part of the acquisition with available cash and proceeds from a new credit facility. Open Text has committed bank financing of up to $800 million from RBC Capital and Barclays. The deal is expected to close within 90 days.