OpenText has announced its acquisition of cloud-based software company Catalyst Repository Systems Inc. for more than $98 million CAD.
The Colorado-based Catalyst was founded in 2000 and offers cloud-based software to help manage electronic legal discovery, otherwise known as eDiscovery. The company’s platform is available for legal professionals in North America and Asia, with a second office based out of Japan.
OpenText’s CEO and CTO Mark J. Barrenechea said Catalyst adds to OpenText’s strength in eDiscovery, as it hopes to build the world’s top legal technology platform. “The joint strength of OpenText and Catalyst…combines a powerful set of solutions to help corporate legal departments and law firms seize the opportunities of automation, digital transformation, AI and machine learning,” he said.
The Waterloo-based company purchased Catalyst in a $98 million all-cash transaction. Catalyst’s platform will be integrated into OpenText’s Discovery Solutions.
The popular Canadian enterprise information management software company also recently announced its acquisition of Georgia-based Liaison, a provider of cloud-based information integration and data management solutions for $310 million. According to its website, OpenText has acquired six companies (including Catalyst) since 2017, including Hightail in February and Guidance Software for $300 million. It also acquired Dell EMC’s Enterprise Content Division, including Documentum for $1.62 billion USD.
The company also announced Thursday its second quarter financial results, listing a total revenue of $735 million USD. This is in line with its total revenue which was $734 million USD in Q2 of last year.
“Our strategy is total growth, where mergers and acquisitions will continue to be our largest growth driver, augmented with organic growth,” said Barrenechea. “Over the last 60 days, we have deployed approximately $386 million in capital and closed two cloud-based acquisitions. With a highly talented team and an increasingly strategic position with customers, we are well positioned to scale OpenText to new levels in the coming years.”
OpenText plans to continue building on acquisition and merger with a focus on building its cloud revenues, according to its Q2 financial report.