OpenText Signs Definitive Agreement to Acquire Actuate
Open Text enters a BI market with healthy growth but is also very competitive
OpenText Corporation (NASDAQ: OTEX) (TSX: OTC) today announced a definitive agreement to acquire Actuate Corporation NASDAQ: BIRT), a Business Intelligence and analytics software company.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, a newly formed, wholly-owned subsidiary of OpenText will commence a tender offer for all outstanding shares of Actuate for $6.60 per share in cash, for a total equity value of approximately $330 million, less Actuate’s cash, for an enterprise value of approximately $272 million. OpenText will fund the acquisition with cash on hand.
OpenText intends to commence a tender offer for all of the shares of common stock of Actuate within 7 business days. Under the agreement, the tender offer will be followed by a merger to acquire any untendered shares. The tender offer is subject to the tender of a majority of Actuate’s shares and certain other customary closing conditions. It is expected that the transaction will close in the third quarter of OpenText’s fiscal 2015.