OpenText Corporation, an enterprise information management software provider, has entered into a definitive agreement to acquire Dell EMC's Enterprise Content Division (ECD), including Documentum. ECD offers a suite of enterprise content management solutions with deep industry focus, including the Documentum, InfoArchive, and LEAP product families.
The sale of Documentum had been expected for some time in connection with the purchase of EMC by Dell, Inc.
Just last week, Dell announced that it had completed the acquisition of EMC, creating what Dell described as a $74 billion company with a technology portfolio spanning hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity.
OpenText's purchase price for Dell EMC's ECD is $1.62 billion, which is 2.7 times ECD FY15 revenue of $599 million. The OpenText-ECD transaction is anticipated to close within 90 to 120 days. Under the terms of the agreement, the software, associated services, and employees of ECD will be integrated into OpenText.
The acquisition is expected to deepen OpenText's EIM offering with a portfolio focused on enterprise content management and information lifecycle management.
With industry offerings, expertise and footprints in healthcare, life sciences, and public sector, plus additional capacity in financial services, energy, and engineering, OpenText is looking to further strengthen its vertical offerings, customer base, managed services, and geographical coverage. OpenText and Dell EMC also disclosed their intention to negotiate and enter into a strategic commercial partnership to expand customer offerings and to better serve customer needs.
"We are at the beginning of the digital revolution where extreme connectivity, automation, and computing are converging," said OpenText CEO and CTO Mark J. Barrenechea, in a statement provided by the company with the announcement. "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. We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText."