OpenTextâ¢ (NASDAQ: OTEX) (TSX: OTEX), a global company in Enterprise Information Management (EIM), has entered into a definitive agreement to acquire Covisint Corporation (NASDAQ: COVS), a Cloud platform for building Identity, Automotive, and Internet of Things (IoT) applications, the company said.
The acquisition is expected to deepen OpenText´s EIM offering with a cloud-based IoT platform-as-a-service and expand OpenText´s presence in the Automotive industry through strong customer relationships and strategic partnerships for supply chain collaboration.
Covisint will be integrated into the OpenText Business Network, a portfolio of cloud solutions and software that facilitates efficient, secure, and compliant information flows between organizations.
The transaction purchase price of USD 2.45 per share is approximately USD 103 million of market value, or USD 75 million of enterprise value.
OpenText intends to fund the transaction with cash on hand. The transaction is expected to close in the third quarter of calendar 2017 and is subject to customary closing conditions, including approval by shareholders of Covisint. (1)
OpenText enables the digital world, creating a better way for organizations to work with information, on premises or in the cloud.