Leader in Secure Information Exchange and Unified Communications
WATERLOO, Ontario, March 9, 2020 /CNW/ -- OpenText™ (NASDAQ: OTEX) (TSX: OTEX), "The Information Company," today announced that it has acquired XMedius, a provider of secure information exchange and unified communication solutions. XMedius brings decades of experience and patented technologies to transform secure and collaborative communication, enabling organizations to move more workloads to the cloud and unlock the information advantage.
"With more than 50,000 installations worldwide, the acquisition of XMedius further strengthens OpenText's leadership in secure information exchange, unified communications and digital fax," said Mark J. Barrenechea, OpenText CEO & CTO. "We welcome XMedius's customers, strong partner network and employees to OpenText. The acquisition reaffirms our commitment to Montreal, already a strategic hub for our analytics and AI development teams. Together, we will bring leading cloud and hybrid solutions to enterprises and small to mid-sized businesses."
XMedius also provides innovative technologies to optimize the omnichannel customer experience and the connected business. These solutions will complement OpenText's Customer Experience Management (CEM) and Business Network (BN) platforms. More information on XMedius can be found on www.xmedius.com.
Terms of Agreement and Preliminary Outlook(1)
The purchase price of the acquisition is approximately $75 million in an all-cash transaction. XMedius currently generates approximately $40 million annually in revenue. OpenText expects first year revenues to be down, up to 20% due to customary purchase price accounting adjustments and typical integration activities. XMedius is not expected to contribute significant revenue to OpenText's results for the fiscal third quarter ending March 31, 2020.
OpenText, The Information Company™, enables organizations to gain insight through market leading information management solutions, on-premises or in the cloud. For more information about OpenText (NASDAQ: OTEX,TSX: OTEX) visit opentext.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements regarding OpenText's plans, objectives, expectations and intentions relating to the acquisition, the acquisition's expected contribution to OpenText's results, financing and closing of the acquisition, as well as the expected timing and benefits of the acquisition, impact on future financial performance including in respect of annual recurring revenues, cloud growth, adjusted EBITDA, cash flows, earnings and dividends and preservation of credit ratings, may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors, which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Copyright ©2020 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information, visit: http://www.opentext.com/who-we-are/copyright-information.
Notes: (1) All dollar amounts in this press release are in US dollars unless otherwise indicated.
For more information, please contact:
Harry E. Blount
Senior Vice President, Investor Relations
Open Text Corporation
Vice President, Global Communications
Open Text Corporation