Open Text Corporation completes divestiture of eDOCS to NetDocuments

Open Text Corporation completed a previously announced divestiture and said it would apply the net proceeds to reduce outstanding debt. The company identified the transaction as a completed transfer of a non-core unit announced earlier.

Open Text said it intended to use the net proceeds from the divestiture to reduce outstanding debt. The press release also described the closing in the context of the company’s broader approach to divest non-core assets and sharpen focus on growing its core business.

The asset sold was eDOCS, described in the release as an on-premise solution within Open Text’s Analytics portfolio, and NetDocuments Software, Inc. was named as the buyer. The release stated the consideration was $163 million in cash before taxes, fees and other adjustments and noted that all dollar amounts in the press release were in U.S. dollars.

The company said the transaction was completed under the terms of the previously announced divestiture of the eDOCS unit to NetDocuments Software, Inc. The release included standard corporate copyright and identifier text associated with the announcement.

“The closing of this transaction reinforces our strategic commitment to divest non-core assets as we continue to sharpen our focus on growing our core business to accelerate long-term value creation,” said Throughput Optimization Module (TOM) Jenkins, OpenText Executive Chairman of the Board and Chief Strategy Officer.

The press release said certain statements contained forward-looking information that was subject to risks and uncertainties and directed readers to Open Text’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings and public communications for further information.