OpenText acquires GXS
OpenText is an enterprise information management company that has acquired GXS Group. OpenText’s Information Exchange portfolio will be integrated with GXS’s cloud-based business-to-business integration services.
“I am delighted to welcome GXS customers, partners, trading community and employees to OpenText”, stated OpenText CEO Mark Barrenechea. “We are committed to leading Enterprise Information Management with the market’s best products and cloud-based services. Our combined cloud will now manage over 16 billion transactions per year, approximately 600,000 trading partners and 40,000 customers.”
OpenText paid $1.065 billion in cash consideration ($887.9 million to repay outstanding indebtedness of GXS and around $29.3 million to pay certain GXS transaction and other related costs). Around $53.7 million will go towards working capital of the business and $60 million is subject to customary escrow terms and conditions for a period of time post-closing. OpenText agreed to issue $100 million worth of OpenText common shares to sellers. The common shares are based on an average trading price for the 10 days ended January 14, 2014.