OpenText to Divest Vertica for US$150 million

Executive Summary

• Open Text Corporation entered a definitive agreement to sell its Vertica analytics business to Rocket Software for US $150 million in cash.
• The transaction is part of OpenText’s strategic plan to focus on core cloud‑based secure data and enterprise AI products.
• Proceeds are earmarked to reduce outstanding debt, strengthening the company’s balance sheet.

Key Details

• Transaction Value: US $150 million (cash, before taxes, fees, and adjustments).
• Buyer: Rocket Software Inc., a Bain Capital portfolio company.
• Seller: Open Text Corporation (NASDAQ: OTEX, TSX: OTEX).
• Asset Sold: Vertica, the analytics product within OpenText’s non‑core Analytics portfolio.
• Vertica FY2025 Revenue Contribution: Approximately US $80 million annually.
• Use of Proceeds: Primarily to reduce outstanding debt.
• Closing Timeline: Expected to close during fiscal year 2026, subject to customary approvals and closing conditions.
• Financial Advisor: Goldman Sachs & Co. LLC (serving OpenText).
• Strategic Rationale: Rationalizing non‑core assets to reinforce capital allocation framework, accelerate long‑term growth, and enhance shareholder value.

Notable Quotes

“We are executing on our strategic plan, focusing on our core product offerings… By rationalizing non‑core assets, we are strengthening the portfolio, reinforcing our capital allocation framework, and positioning OpenText to accelerate long‑term growth and shareholder value.” – P. Thomas Jenkins, Executive Chairman & Chief Strategy Officer, OpenText

“I want to recognize the dedication of our teams and thank our customers and partners for their continued trust… This transaction places the Vertica solution with a strong, committed steward.” – James McGourlay, Interim CEO, OpenText