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)
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