In an announcement on Monday, Dell reported it will sell its software solutions to Ontario-based Open Text Corporation for $1.6 billion, with an expected close date over the next 90 to 120 days.
Open Text’s acquisition includes the purchase of Dell’s Enterprise Content Division (ECD), including EMC’s Documentum, InfoArchive and LEAP that was part of Dell’s $67 billion acquisition of EMC just last week. The suite of solutions help companies minimize the amount of content stored, while making it more efficient for companies to access it.
This follows Dell's plan 11 months ago to acquire EMC to strengthen their cloud offerings. However, in April this year, both companies reported they would purge their solutions and reorganize their offerings before finalizing the largest technology merger in history, making Round Rock-based Dell the biggest privately controlled technology company in the world. This includes Dell’s sale of Dell Software Group for close to $2 billion in June to a San Francisco based private equity firm.
Per the terms of the agreement, the ECD employees, software and services will integrate into Open Text, strengthening its industry offerings of enterprise information management software into new verticals across a larger customer base.
"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. "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."
Image provided by Dell.
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