The Dell EMC merger was only finally completed last week, but Dell is already offloading EMC’s enterprise content division, which includes Documentum, InfoArchive and LEAP products. The buyer? Waterloo’s OpenText, which specializes in enterprise information management solutions.
OpenText signed a definitive agreement to acquire the enterprise content division for a total of US$1.6 billion. The vendor hopes to begin onboarding the EMC assets within the next 12 months. OpenText expects the deal to close in 90 to 120 days. The acquisition is subject to regulatory approvals and customary closing conditions.
As part of the acquisition, the enterprise content division’s software, services and employees would become part of OpenText. According to the announcement, OpenText expects that purchase to deepen its existing enterprise information management portfolio with new enterprise content management and information lifecycle management solutions.
“We are at the beginning of the digital revolution where extreme connectivity, automation, and computing are converging,” said Mark J. Barrenechea, CEO and CTO of OpenText, in a statement. “This acquisition further strengthens OpenText as a leader in enterprise information management, enabling customers to capture their digital future and transform into information-based businesses.”
The acquisition will also add to OpenText’s portfolio of vertical products and managed services, as well as give a boost to its customer base and geographical coverage.
OpenText and Dell EMC also plan to work together through a newly-struck strategic commercial partnership to expand customer offerings and to better serve customer needs, according to the announcement.
“In determining the best long-term future for ECD, we wanted to create a business with a leading position in enterprise information management,” said David Goulden, president of Dell EMC, in a statement. “OpenText shares our vision for the transformation to digital business, our passion for the role of information in the digital world and the breadth of capabilities to help our customers realize that vision. Importantly, OpenText also shares our commitment to deliver a world-class total customer experience. Today’s news is great for all stakeholders.”