OpenText™ (NASDAQ: OTEX) (TSX: OTEX), “The Information Company,” today announced that it has acquired XMedius, a provider of secure information exchange and unified communication solutions. XMedius brings decades of experience and patented technologies to transform secure and collaborative communication, enabling organizations to move more workloads to the cloud and unlock the information advantage.
“With more than 50,000 installations worldwide, the acquisition of XMedius further strengthens OpenText’s leadership in secure information exchange, unified communications and digital fax,” said Mark J. Barrenechea, OpenText CEO & CTO. “We welcome XMedius’s customers, strong partner network and employees to OpenText. The acquisition reaffirms our commitment to Montreal, already a strategic hub for our analytics and AI development teams. Together, we will bring leading cloud and hybrid solutions to enterprises and small to mid-sized businesses.” Fintech News
XMedius also provides innovative technologies to optimize the omnichannel customer experience and the connected business. These solutions will complement OpenText’s Customer Experience Management (CEM) and Business Network (BN) platforms. More information on XMedius can be found on www.xmedius.com.
Terms of Agreement and Preliminary Outlook(1)
The purchase price of the acquisition is approximately $75 million in an all-cash transaction. XMedius currently generates approximately $40 million annually in revenue. OpenText expects first year revenues to be down, up to 20% due to customary purchase price accounting adjustments and typical integration activities. XMedius is not expected to contribute significant revenue to OpenText’s results for the fiscal third quarter ending March 31, 2020.
