Open Text to buy customer communications assets from HP for $315 million US
HP Extream, HP Output Management, HP TeleForm and HP LiquidOffice to be part of the deal
Open Text Corp. says it will pay US$315 million to acquire some of HP Inc.'s business assets.
The transaction includes HP Extream, HP Output Management, HP TeleForm and HP LiquidOffice – collectively used to manage customer communications.
Open Text said the purchase will help it expand its range of customer communications management products and services.
It estimates the acquired HP businesses will generate between $110 million and $125 million US of annualized revenue.
The company, based in Waterloo, is approaching the end of its 2016 financial year, which ends June 30. Revenue for the first nine months ended March 31 totalled $1.34 billion US and analyst estimates full-year revenue will be $1.82 billion US.
Open Text expects the sale to close in the first quarter of its 2017 financial year, which begins July 1.