OpenText, the Ontario-based software company, has formally cleared its acquisition of Micro-Focus the UK-based provider of testing and development tools. The move will see OpenText provide expanded offerings to support its customers’ growing needs to digitise and work smarter, it said.
The reported total purchase price of approximately $5.8bn is inclusive of Micro Focus’ cash and debt, pricing the deal at 2.3x Micro Focus’ trailing 12-month revenues and 6.7x its trailing 12-month adjusted EBITDA.
Cost synergies of $400mn are expected through an approximate 8% reduction in the workforce, the acquiring company reports.
