Waterloo’s OpenText to acquire U.K. software giant Micro Focus in $6B deal

Waterloo, Ont.-based tech company OpenText says it will acquire Micro Focus International plc in a deal valued at $6 billion.

The all-cash deal will see OpenText acquire the U.K.-based publicly traded enterprise software company, inclusive of Micro Focus’s cash and debt, for532 pence per share.

OpenText says it will take on $4.6 billion in new debt to fund the acquisition, with $1.3 billion in cash and a $600-million draw on its existing revolving credit facility to cover the remainder of the purchase price.

The company says it does not anticipate raising any equity to fund the purchase.

The deal is expected to close in the first quarter of 2023.

OpenText says it expects to be one of the largest software and cloud businesses in the world once the acquisition is complete.

This report by The Canadian Press was first published Aug. 25, 2022.

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