OpenText Corp shares rise after acquiring GXS Group
Open Text Corp.'s shares rose to an all-time high after it acquired cloud company GXS Group Inc for USD1.17 billion. This was according to a report by Financial Post. This was by far the biggest purchase that the Canadian software company had made. After the Tuesday announcement, Open Text Corp.'s shares increased to a record high of USD7.77 per share, which was a 10% premium. It closed at USD85.32 in Toronto, Financial Post said.
OpenText would be placing USD100 million worth of its stock and USD1.07 billion in cash to pay for the acquisition of the Canadian cloud-technology provider.
"We expect to deliver even greater value to our customers and partners through new services and market-leading B2B integration from GXS," said Open Text CEO Mark Barrenechea. "Upon closing, Open Text and GXS together expect to serve more than 80,000 customers and support over 16 billion annual transactions in the cloud."
Open Text expected the transaction to be closed within 90 days. After that, 2.1% to 2.4% of its outstanding common shares would be owned by GXS stockholders, according to the Financial Post.