Thursday, December 19, 2013

Open Text to acquire GXS for $1.7bn



Interesting move by open text lets see how they translate this into revenue. Aivars Lode avantce

Open Text to acquire GXS for $1.7bn

Canada-based business software provider, Open Text have announced their acquisition of GXS Group, a privately held e-commerce services company for cash and stock worth c.$1.7bn

The purchase will be secured by a payment of $1.065bn cash and $100m in common shares and is expected to enhance both Open Text’s revenue and its workforce.
GXS’s B2B integration software and managed services will be added to Open Text’s enterprise information management platform to expand the scope of its services to procurement, supply chain and accounting. The move is expected to be completed in two years time and highlights Open Text’s interest in the B2B integration market following its acquisition of EasyLink in 2012. 

“GXS is the market leader in B2B integration services,” said Open Text president and CEO, Mark Barrenechea during a conference call with investors. “It is the engine room of commerce. This is where companies manage their transactions with their trading partners.”

Open Text, who by the end of the fiscal year, June 30th, recorded revenues of $1.36bn are anticipating a boost in adjusted earnings following its acquisition of GXS who disclosed earns of $487m over the same period. 

Furthermore, Open Text will see its workforce swell by up to 60% as 2,900 GXS employees are merged into the company.




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