Acquisition Extends OpenText Business Network and Cloud Leadership
OpenText™ (NASDAQ: OTEX, TSX: OTEX), a global leader in Enterprise Information Management (EIM), today announced it has completed the closing of its previously announced acquisition of Liaison Technologies, Inc., a leading provider of cloud-based information integration and data management solutions.
"The world of digital is very dynamic, and companies need the ability to connect business to business, application to application, with speed, security, and reusability," said OpenText CEO & CTO Mark J. Barrenechea. "The acquisition of Liaison extends the OpenText Business Network and Cloud leadership and provides new technologies for our customers to build application networks in the dynamic world of mobile, cloud, SaaS, and Omnichannel. We are tremendously excited today to welcome Liaison customers, trading partners and employees to OpenText."
Liaison's ALLOY® Platform brings innovative and differentiated technologies to modernize, streamline and accelerate complex information integration for global intelligent and connected enterprises. This technology dramatically accelerates onboarding and migration, enabling OpenText customers to become more agile and responsive to changing market and customer demands.
Liaison will be integrated into OpenText Business Network, a suite of solutions that facilitate efficient, secure, and compliant information flows between people, systems, and things. OpenText Business Network is the global leader in enabling digital business, processing trillions in commerce every year and connecting over 1 million businesses globally.
Barrenechea continued, "Liaison's strong innovation in multi-enterprise application integration extends OpenText Business Network leadership within key verticals including life sciences, manufacturing and healthcare. The acquisition enables OpenText to address fast-growing adjacent market segments with a unique managed services approach."
Terms of the Agreement and Preliminary Outlook
The purchase price is approximately $310 million in an all-cash transaction. Liaison is expected to contribute insignificant revenue to OpenText's results for the second quarter ending December 31, 2018, given that the transaction has closed during the holidays.
Liaison is expected to be on the OpenText target operating model within the first twelve months after closing. Financial details regarding the acquisition will be provided with OpenText's second quarter fiscal year 2019 earnings materials and conference call.
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