Waterloo, Ontario-based Open Text Corp. (NASDAQ: OTEX, TSX: OTC), a provider of enterprise data management software, has acquired Cordys B.V. for US$33 million. The Netherlands-based Cordys, a specialist in business process management software, was formerly a portfolio company of U.S.-based Argonaut Private Equity. In April 2007, Argonaut led a US$80 million equity financing of the company.
OpenText Buys Cordys to Expand BPM and Case Management
New cloud-based platform brings increased capabilities and flexibility
WATERLOO, Ontario, Aug. 16, 2013 /CNW/ – OpenText™ (NASDAQ: OTEX, TSX: OTC), a global leader in Enterprise Information Management (EIM), today announced that it has acquired BPM market leader Cordys. The addition of Cordys affords OpenText customers the most comprehensive set of EIM and BPM software from a single vendor. Customers leveraging the benefits of their software today include: Siemens, Mercer, Pacific Blue Cross and Tata Steel. Cordys is based in Putten, The Netherlands.
“OpenText envisions a world where information and processes are fully integrated, enabling the next generation of Enterprise Information Management applications with out-of-the-box software,” said OpenText CEO Mark J. Barrenechea. “The acquisition of Cordys will enable OpenText to offer the strongest process and case management platform in the business. It means that we are now able to offer the broadest set of BPM technologies, including a 100% native cloud-based BPM platform and PaaS solution, cloud orchestration, integration ESB, rules engine, business activity monitoring, social and mobile interfaces, and an application development environment all from a single vendor and single platform.”
The acquisition also enables OpenText to more aggressively leverage indirect market channels such as ISVs, SIs, and MSPs, who will find the new BPM features and SaaS and PaaS deployment options to be an attractive platform for creating process automation solutions for their customers.
Increased System Flexibility
The Cordys platform will enable OpenText to take a leadership position in cloud-based BPM and PaaS technologies, which due to the flexibility of systems development, are considered to be the fastest growing segment of the BPM market. The Cordys BOP (Business Operations Platform) was built from the ground up for the cloud, and features a multi-tenant SOA-based architecture with cloud orchestration capabilities to give OpenText customers the ability to choose from on-premises, cloud, or hybrid deployment for optimal systems performance and efficiency.
OpenText’s customers will also benefit from many other technologies acquired through Cordys, including an enterprise service bus (ESB); a composite application framework (CAF) for rapid application development which includes mash-up and mobile interfaces; a process rules engine; process analytics and business activity monitoring (BAM); and master data management functionality.
The Cordys platform will provide OpenText customers with a robust platform suitable for all types of process and case-oriented workloads from a single system, and its highly modular architecture supports co-existence with other BPM systems, ECM (Enterprise Content Management) and CEM (Customer Experience Management) products, as well as third-party systems.
“We are very excited to be part of the OpenText family,” said Art Landro, Chief Executive Officer of Cordys. “Our products will add exceptional value to their EIM suite of solutions, and will position OpenText as the leader in the cloud and PaaS marketplace. Together, we can provide customers and partners with a multi-tenant BPM and case management solution with cloud and hybrid deployment options, as well as support ISVs and MSPs looking to take solutions into their markets. The advanced BPM and PaaS technologies of Cordys, and the impressive resources, customer base, and global reach of OpenText make us the perfect team at the perfect time to take a leadership position in this expanding market.”
Powerful Process Automation Roadmap
The Cordys acquisition, together with the purchase of ICCM Solutions (announced July 31, 2013), extends OpenText’s existing BPM and case management offerings to meet the needs of the most demanding enterprise customers. Highlights of the broader process automation portfolio include:
The Cordys platform will be referred to as “OpenText Cordys” and will complement OpenText’s existing BPM offerings.
The existing BPM products will continue to be strategic offerings for on-premises solutions deployment, and will continue to receive product enhancements, full maintenance and support services, and professional services support in perpetuity.
OpenText is planning to offer a unified user interface across its core on-premises BPM systems so that users can easily and uniformly access work items across multiple process engines.
ICCM’s Assure remains the solution for customers wanting to build smart process applications in-house, and also as the foundation for OpenText’s packaged smart process applications offerings. OpenText Assure runs today on top of the OpenText MBPM platform and it will also be ported to the OpenText Cordys platform to give customers the flexibility to deploy their smart process applications in the cloud or on-premises.
The transaction is now complete and the approximate purchase price was $33 million USD.
For more information, please contact your OpenText sales representative at BPMSales@OpenText.com.
As one of the five foundational pillars of OpenText’s Enterprise Information Management (EIM) strategy, OpenText Business Process Management (BPM) solutions deliver improved business insight, higher process velocity, and greater business impact through strategic planning, automation, and optimization of business processes. Our process and case management solutions empower employees to work more efficiently, improve the orchestration of complex processes, and outperform their business goals with real-time business insight. For further information on OpenText Business Process Management (BPM) and process applications, including cloud, on-premise and hybrid approaches:
Visit OpenText’s BPM pages
Find additional commentary about the acquisition on our Because Process Matters blog
To learn more about OpenText EIM:
Read the blog of Mark Barrenechea, OpenText’s CEO
Visit the OpenText EIM Resource Center, where you can review the latest customer videos, whitepapers and more
Register to attend OpenText Enterprise World 2013 in Orlando, Florida, November 17-21
Follow OpenText on Twitter @opentext, LinkedIn (www.linkedin.com/company/OpenText) and Facebook (www.facebook.com/opentext)
OpenText provides Enterprise Information Management software that enables companies of all sizes and industries to manage, secure and leverage their unstructured business information, either in their data center or in the cloud. Over 50,000 companies already use OpenText solutions to unleash the power of their information. To learn more about OpenText (NASDAQ: OTEX; TSX: OTC), please visit: www.opentext.com.
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.
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For further information:
Greg Secord, Vice President, Investor Relations, OpenText Corporation, San Francisco: (415) 963-0825, New York: (646) 843-5621, email@example.com; or Peter Gorman, Director, Public Relations, OpenText Corporation, +1 617-669-4329, PublicRelations@OpenText.com
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