Rocket Software has announced it has signed a definitive agreement to acquire the Application Modernization and Connectivity business (AMC) of OpenText, which was formerly part of Micro Focus. The total purchase price is $2.275B.
The combination of AMC and Rocket Software’s highly complementary product portfolios will create one of the world’s largest IT and mainframe modernization and connectivity software companies. Under the terms of the agreement, the software, associated services, and approximately 750 employees of AMC will be integrated into Rocket Software.
Until closing, OpenText and Rocket Software will continue to constructively collaborate to protect customer investments and expand offerings for joint customers.
Goldman Sachs & Co. LLC is serving as sole financial advisor to OpenText and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to OpenText.
“The growth prospects for Information Management have never been better. We are divesting our mainframe business so we can singularly focus on the powerful Cloud and AI opportunities within Information Management. This divestiture will better position us to move with more speed in higher organic growth areas such as Cloud capabilities and AI, strengthens our balance sheet to achieve our deleveraging targets ahead of schedule and returns the company to capital flexibility. This divestiture supports our focus on creating value for our shareholders.” said Mark J. Barrenechea, OpenText CEO & CTO.
“Welcoming the AMC business and its talented team to Rocket Software marks an extraordinary moment for the company, the market, and the thousands of organizations who share in our vision of making the best-of-both-worlds a reality,” says Milan Shetti, Rocket Software President and CEO.
The deal is expected to close in Q2 2024 ending June 30, 2024.
