Dell

OpenText buys Dell’s content division for $1.62bn

OpenText is acquiring Dell Technologies’ enterprise content division (ECD), including the Documentum business for $1.62 billion.

The move can be seen as Dell continuing to raise funds to pay for its mammoth $60 billion takeover of EMC, just completed, by offloading non-core businesses, and enterprise information management (EIM) company OpenText expanding into new markets.

ECD offers a suite of enterprise content management solutions including the Documentum, InfoArchive and LEAP product families.

Under the terms of the agreement, the software, associated services, and employees of ECD will be integrated into Canadian company OpenText. The acquisition is expected to deepen OpenText’s EIM offering with a substantial portfolio focused on enterprise content management and information life cycle management.

OpenText and Dell EMC (the EMC part of Dell Technologies) also announced today 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 Barrenechea. “This acquisition further strengthens OpenText as a leader in EIM, 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.”

The purchase price is 2.7 times ECD FY15 revenue of $599 million. “ECD provides great value for customers, and we are pleased that this will be enhanced as part of OpenText,” said David Goulden, president, Dell EMC.

In its last two annual customer conferences OpenText has said it is committed to expanding its sales channels.

@AntonySavvas

Antony Savvas

York, UK-based Antony Savvas has been a technology journalist for 25 years and has expertise in all major areas of enterprise and consumer IT. He has worked for a number of leading technology magazines and websites and his work is syndicated across the internet. He also undertakes corporate work for some of the world's leading technology companies.

Share
Published by
Antony Savvas
Tags: EMCOpenText

Recent Posts

Flashpoint enters new chapter with global partner programme

Security vendor Flashpoint debuts partner programme following $28m funding

7 years ago

Channel partner “disconnect” hindering growth

Complex buying journeys and sprawling partner networks hampering customer experience, says Accenture

7 years ago

Cyxtera launches global channel partner programme

Datacentre provider Cyxtera says launch is “milestone in our go-to-market strategy”

7 years ago

US IT provider brings mainframe services to UK

Ensono highlights importance of mainframes still to major industries

7 years ago

VASCO and Nuvias expand distribution across EMEA

Security vendor VASCO looks to replicate UK and German set up across EMEA

7 years ago

Splunk says channel investments driving growth

Splunk details investment in Partner+ programme at .conf2017

7 years ago