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OpenText to Acquire Covisint

By Ken Briodagh June 06, 2017

OpenText, a global Enterprise Information Management (EIM) company, has announced that it recently entered into a definitive agreement to acquire Covisint Corporation, a leading Cloud platform for building Identity, Automotive, and Internet of Things (IoT) applications.

The acquisition was entered into with the expectation of deepening OpenText’s EIM offering with a cloud-based IoT platform-as-a-service while expanding the company’s presence in the automotive industry through strong customer relationships and strategic partnerships for supply chain collaboration. Covisint will be integrated into the OpenText Business Network, a portfolio of cloud solutions and software that facilitates efficient, secure, and compliant information flows between organizations.

Terms of the Agreement

The transaction purchase price of $2.45 per share is approximately $103 million of market value, or $75 million of enterprise value. OpenText intends to fund the transaction with cash on hand. The transaction is expected to close in the third quarter of calendar 2017 and is subject to customary closing conditions, including approval by shareholders of Covisint.

Covisint’s identity management capability is a critical piece of this acquisition. It is the lynchpin of security in the IoT, and a rising trend in terms of first steps toward more secure systems of solutions. It is not unreasonable that, in addition to the entrance to the connected transportation and automated vehicles space, this piece of the Covisint business was a key factor in the decision. And, if so, a wise point of consideration for OpenText in entering the IoT.




Edited by Alicia Young

Editorial Director

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