Blue Harbour CEO says Open Text could be acquired: Reuters


San Diego, California, USA - July 25, 2011: Two Preiser businessman figurines standing on blank puzzle pieces illustrating the concepts of problem solving and negotiation. Shot in a studio setting. Photo courtesy of DNY59/iStock/Getty Images
San Diego, California, USA - July 25, 2011: Two Preiser businessman figurines standing on blank puzzle pieces illustrating the concepts of problem solving and negotiation. Shot in a studio setting. Photo courtesy of DNY59/iStock/Getty Images

U.S. activist hedge fund Blue Harbour Group LP CEO Cliff Robbins told a conference in New York on Tuesday that Canadian business information management software company Open Text Corp could be acquired.

“There is potential for a strategic sale down the road,” Robbins said during a presentation at 13D Monitor’s Active-Passive Investor Summit, adding that there has been significant consolidation in the software sector.

Open Text shares rose 4 percent to $35.95 on Tuesday.

Robbins said that a company sale is “always possible in the software space.” “I think the return opportunity is significantly higher than this,” referring to where Open Text shares were trading.

Greenwich, Connecticut-based Blue Harbour owns a 3.49 percent stake in Open Text, according to Thomson Reuters data.

An Open Text spokeswoman declined to comment.

Update: In February, Waterloo-based Open Text acquired Hightail Inc, a venture-backed U.S. cloud service for file sharing and creative collaboration.

(Reporting by Liana B. Baker and Svea Herbst in New York; Editing by Chizu Nomiyama and Phil Berlowitz)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of DNY59/iStock/Getty Images

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