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OpenText divesting AMC business to Rocket Software for US$2.3 billion

The logo for OpenText is shown in this undated handout photo. THE CANADIAN PRESS/HO-OpenText *MANDATORY CREDIT

OpenText Corp. says it's divesting its AMC business to Rocket Software, Inc. for US$2.275 billion in cash.

The Waterloo, Ont.-based company says it has reached a definitive agreement with Rocket, a Bain Capital portfolio company.

OpenText says its AMC business provides mainframe modernization and connectivity software to more than 100,000 customers. 

It says the transaction will reinforce and expand OpenText's focus on cloud and artificial intelligence and will result in more predictable growth. 

The company says the net proceeds of the deal will be used to reduce its debt. 

OpenText expects the deal to close in its fourth fiscal quarter ending June 30, 2024. 

This report by The Canadian Press was first published Nov. 28, 2023.

Companies in this story: (TSX:OTEX)

The Canadian Press

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