Open Text to Buy HP Customer Communications Assets for $315 Million
June 20 2016 - 10:39AM
Dow Jones News
By Tess Stynes
Open Text Corp. agreed to acquire certain
customer-communications management assets from HP Inc. for roughly
$315 million, a deal the Ontario information-technology company
expects to complement its software offerings.
The Waterloo, Ontario, company has been on an acquisition spree
lately, including its $170 million deal for several of HP's
customer-service software and services assets that closed last
month.
The deal unveiled Monday, which is expected to close in the
first quarter of next year, includes HP's Exstream, Output
Management, TeleForm and LiquidOffice assets. Open Text expects the
acquisition to generate annual revenue of between $110 million and
$125 million, and immediately boost its earnings.
HP, one of two companies created last fall by the breakup of
Hewlett-Packard Co., is tied to slower growing markets for PCs and
printers. The company has continued to target niches where sales
are growing, such as 3-D printing.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
June 20, 2016 10:24 ET (14:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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