Moody’s reviews Open Text

Moody's Investors Service said it placed all of Open Text Corp.’s credit ratings, including its Ba1 corporate family rating, on review for downgrade.

The review was prompted by the company's announcement that it entered into an agreement to acquire certain software assets from EMC Corp. (a subsidiary of Dell, Inc., Ba1, stable) for $1.65 billion of cash consideration. There is no publicly available information on the acquired assets and details of the final capital structure have not been disclosed.

The transaction is expected to close in the next 90 to 120 days.

The SGL-1 speculative grade liquidity rating is unchanged but may be lowered depending upon the company's expected liquidity position upon the close of the acquisition.

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