Rocket Software to acquire OpenText’s AMC business for over $2 billion (NASDAQ:OTEX)
Summary
Information management solutions provider OpenText (NASDAQ:OTEX) said on Tuesday it will divest its Application Modernization and Connectivity business (AMC) to privately held software development firm Rocket software for $2.275 billion in cash. OpenText said the deal will help the Canadian company to expand its focus on cloud and artificial intelligence. “This divestiture will better position us to move with more speed in higher organic growth areas such as Cloud capabilities and AI, strengthens our balance sheet to achieve our deleveraging targets ahead of schedule and returns the company to capital flexibility.,” said OpenText chief executive officer Mark Barrenechea. OpenText’s AMC business provides mainframe modernization and connectivity software enabling customers to run business applications in hybrid cloud environments. The company expects the deal to close in 2024.
