OpenText to divest non-core unit for $163 million

* Open Text (NASDAQ:OTEX [https://seekingalpha.com/symbol/OTEX]) announced on Thursday that it has reached a definitive agreement to divest an on-premise solution (eDOCS), a part of its Analytics portfolio, to NetDocuments, for US$163 million in cash.
* The business to be divested is part of OpenText's Analytics product group and contributed approximately $30 million in annual revenue in OpenText's fiscal year ended June 30, 2025.
* OpenText said it intends to use the proceeds of the sale to reduce its outstanding debt.
* Under the terms of the agreement, the software, customer contracts, associated services, and employees will be integrated into NetDocuments.
* The transaction is expected to close by early 2026.
* Goldman Sachs & Co. is serving as financial advisor to OpenText.
* OTEX +0.19% after hours to $37.735.
* Source: Press Release [https://seekingalpha.com/pr/20253699-opentext-to-strategically-divest-non-core-unit-for-us-163-million]

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