Open Text Corp.’s stock
OTEX,
was up by 2% in premarket trading on Wednesday, a day after the company said it would sell its AMC business unit to Rocket Software Inc., a Bain Capital portfolio company, for $2.28 billion in cash. OpenText’s AMC unit specializes in mainframe modernization and connectivity software for more than 10,000 customers. Open Text said the deal will reinforce its focus on cloud and artificial intelligence products. “We are divesting our mainframe business so we can singularly focus on the powerful Cloud and AI opportunities within Information Management,” the company said. The company plans to use the proceeds to pay down its acquisition term loan as well as term loan B. Open Text plans to close the deal by June 30. Goldman Sachs & Co. LLC advised Open Text on the deal. RBC Capital Markets, LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities LLC financial are advisers to Rocket Software.
