Open Text gets $1 billion debt commitment for acquisition financing

By Sara Rosenberg

New York, Sept. 12 – Open Text Corp. has received a $1 billion debt commitment to help back its acquisition of Dell EMC’s Enterprise Content Division, according to a news release.

Barclays is the lead bank on the debt.

The permanent financing for the acquisition has not yet been determined but may include cash on hand, new borrowings under credit facilities and newly issued equity so as to maintain a conservative capital structure and preserve current credit ratings, the release said.

Under the agreement, Dell EMC’s Enterprise Content Division, a provider of Enterprise Content Management solutions, is being bought for $1.62 billion.

Closing is expected in the next 90 to 120 days, subject to regulatory approvals and customary closing conditions. The transaction is not subject to financing.

Open Text is a Waterloo, Ont.-based software provider of Enterprise Information Management.

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