Canadian enterprise software company OpenText Corp (Nasdaq: OTEX, TSX: OTC) has agreed to acquire ANXeBusiness Corp of Southfield, Michigan, a provider of cloud-based information exchange services to the U.S. automotive and healthcare industries. The deal is valued at about US$100 million and is expected to close later this year. Waterloo-based OpenText said the acquired company will complement its business-to-business integration solutions and strengthen its presence in the automotive and healthcare spaces. ANXeBusiness was bought by U.S. private equity firm One Equity Partners (OEP) in October 2006.
OpenText to Acquire ANX
Acquisition to Strengthen Ability to Drive Digital Transformation in the Healthcare and Automotive Industries
WATERLOO, Ontario, April 27, 2016 /CNW/ — OpenText™ (NASDAQ: OTEX, TSX: OTC), a global leader in Enterprise Information Management (EIM), today announced that it has entered into a definitive agreement to acquire ANXeBusiness Corp. (ANX), a leading provider of cloud-based information exchange services to the US Automotive and Healthcare industries. ANX is expected to be integrated into the OpenText Business Network, a portfolio of cloud solutions and software designed for efficient, secure and compliant supply chain and business collaboration between organizations.
Complementing OpenText’s existing B2B integration solutions, ANX is expected to strengthen OpenText’s industry presence and reach in the Automotive and Healthcare industries through strong customer relationships and targeted business partner collaboration solutions. With ANX, OpenText anticipates it will continue to address industry specific B2B requirements to provide all organizations with reliable, secure and compliant information exchange that meets their specific needs. The acquisition of ANX is also expected to enhance the scope of trading partner collaboration within the OpenText Business Network to include product design and planning.
Terms of the Agreement
The transaction purchase price is approximately $100 million. The acquisition is expected to generate approximately $30 million of annualized revenues, be both accretive and on the OpenText operating model, immediately. The transaction is expected to close in the fourth quarter of fiscal 2016 and is subject to customary closing conditions.(1)
More information can be found in our presentation at investors.opentext.com.
More information on ANX can be found at www.anx.com.
OpenText is the largest independent software provider of Enterprise Information Management (EIM). For more information please visit www.opentext.com.
ANXeBusiness Corp. (ANX), headquartered in Southfield, Michigan, is a global provider of managed compliance, security and connectivity solutions. ANX is certified by the PCI Security Standards Council as a Qualified Security Assessor (QSA) and an Approved Scanning Vendor (ASV). The company is also a member of the U.S. Secret Service Electronic Crimes Task Force. For more information please visit www.anx.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release 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.
2016 Open Text Corporation. OpenText is a trademark or registered trademark of OpenText SA and/or Open Text ULC. 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 OpenText SA or other respective owners. All rights reserved. For more information, visit: http://www.opentext.com/2/global/site-copyright.html_SKU.
(1) All dollar amounts in this press release are in US dollars unless otherwise indicated.
Vice President, Investor Relations
Open Text Corporation
San Francisco: (415) 963-0825
Vice President, Corporate Communications
Open Text Corporation
San Francisco: (650) 302-4191
Photo courtesy of University of Waterloo