Open Text to sell Vertica for $150-million (U.S.)

Executive Summary

• Open Text Corp. has entered into a definitive agreement to sell Vertica, a component of its non-core analytics portfolio, to Rocket Software Inc. (a Bain Capital portfolio company) for $150 million in cash.
• The transaction is part of Open Text's strategic plan to rationalize non-core assets, strengthen its capital allocation framework, and focus on core product offerings in secure data for enterprise AI and cloud solutions.
• Open Text intends to use the net proceeds from the sale to reduce its outstanding debt, with the transaction expected to close during fiscal year 2026, subject to customary approvals.

Key Details

• Transaction Value: $150 million (U.S.) in cash, before taxes, fees, and other adjustments.
• Buyer: Rocket Software Inc., a Bain Capital portfolio company.
• Seller: Open Text Corp.
• Asset Being Sold: Vertica, part of Open Text's analytics product group.
• Financial Impact on Seller: Vertica contributed approximately $80 million (U.S.) in annual revenue to Open Text in the fiscal year ended June 30, 2025.
• Use of Proceeds: Reduction of outstanding debt.
• Closing Timeline: Expected to close during fiscal year 2026, subject to customary approvals and closing conditions.
• Assets Transferred: Software, customer contracts, associated services, and employees.
• Financial Adviser: Goldman Sachs & Co. LLC is serving as financial adviser to Open Text.

Notable Quotes

• "We are executing on our strategic plan, focusing on our core product offerings, our expertise in secure data for enterprise AI, and cloud solutions that provide strategic choice and flexibility for our customers," said P. Thomas Jenkins, Open Text executive chairman of the board and chief strategy officer. "By rationalizing non-core assets, we are strengthening the portfolio, reinforcing our capital allocation framework and positioning Open Text to accelerate long-term growth and shareholder value."
• "I want to recognize the dedication of our teams and thank our customers and partners for their continued trust," said James McGourlay, Open Text interim chief executive officer. "We believe this transaction places the Vertica solution with a strong, committed steward and we look forward to working closely with Rocket Software to support customers and ensure a smooth, thoughtful transition."