Waterloo-based software company OpenText, which provides enterprise information management systems, has announced the acquisition of Dell’s enterprise content division (EDC) for $1.6 billion.
According to a report from Bloomberg, the deal, which comes a few months after Dell acquired EMC’s enterprise content division, will include Documentum, a corporate document tracking software, as well as InfoArchive and LEAP product families. Software, services, and employees of the EDC will be integrated into OpenText, allowing the company to help its customers accelerate the adoption of a stronger digital business environment.
OpenText’s deal is the latest in a string of acquisitions the company has made in recent months as it plans to strengthen its enterprise information management services, which allow companies to manage, secure, and leverage data. OpenText has invested nearly $3 billion since 2014, with this deal being OpenText’s biggest purchase. Earlier this year, OpenText bought software products from Recommind and HP.
With Documentum being a major competitor for OpenText, this deal will put OpenText in a better position to compete with other large companies such as IBM and Oracle.
“This is right in our wheelhouse. We know the market extremely well, we know the products extremely well,” said OpenText’s CEO and CTO Mark Barrenechea. “There’s extremely strong strategic rationale.”
OpenText and Dell also said that they intend to work together and enter a strategic commercial partnership that will help them expand their services and better meet the needs of their customers.
“We are at the beginning of the Digital revolution where extreme connectivity, automation, and computing are converging,” said Barrenechea. “This acquisition further strengthens OpenText as a leader in Enterprise Information Management, enabling customers to capture their Digital future and transform into information-based businesses.”
The deal is expected to close within the next three to four months.
