OpenText set to acquire forensic security firm Guidance Software for $300 million

Waterloo-based OpenText, a provider of enterprise information management systems, announced that it is set to acquire Pasadena, California-based Guidance Software for $300 million CAD.

Guidance Software develops and provides software solutions for digital investigations and forensic security primarily in the United States. The company’s main software solution, EnCase, provides visibility of all endpoints and devices, and allows users to manage data visibility, as well as discover and tackle risk and malware.

OpenText said the acquisition is expected to complement its Discovery portfolio of software and services.

OpenText said the acquisition is expected to complement its Discovery portfolio of software and services, as well as broaden OpenText’s Information Security capabilities through the addition of digital investigation, forensic security, and endpoint solutions. Under its agreement with Guidance Software, OpenText said it has agreed to pay $8.90 per share for Guidance Software, and less Guidance Software’s cash, the final price will be around $278 million.

OpenText plans fund the transaction with cash on hand, plus existing short term debt facilities, and the deal is expected to close in the third quarter of 2017.

OpenText’s acquisition announcement comes on the heels of a recent announcement that the company launched OpenText Magellan, an AI platform that leverages open source machine learning with advanced analysis to help business analysts acquire, merge, manage, and analyze big data and big content.

In September 2016, OpenText acquired Dell Enterprise’s content division for $1.6 billion as it worked to strengthen its enterprise information management services. Before that, the company bought software products from San Francisco-based Recommind.

Amira Zubairi

Amira Zubairi

Amira Zubairi is a staff writer and content creator at BetaKit with a strong interest in Canadian startup, business, and legal tech news. In her free time, Amira indulges in baking desserts, working out, and watching legal shows.