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Waterloo's OpenText signs deal to buy Dell EMC division

Logo from Open Text.

Business software company OpenText Corp. says it has signed a deal to buy Dell EMC’s enterprise content division for US$1.62 billion.

Under terms of the deal, the software, associated services, and employees in the division will be integrated into OpenText.

OpenText says the deal strengthens its enterprise information management business.

The purchase price is 2.7 times the division’s revenue of US$599 million in its 2015 financial year.

The deal is expected to close within 90 to 120 days and is subject to regulatory approval and customary closing conditions.

The companies also say they plan to negotiate a strategic commercial partnership to expand customer offerings.