Micro Focus agrees to £5bn takeover by Canada's OpenText
Open Text Corp.
$29.24
09:20 14/11/24
-4.10%
-$1.25
Software maker Micro Focus said it had agreed a £5.1bn takeover, including debt, by Canadian rival OpenText.
FTSE 250
20,522.81
16:38 14/11/24
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FTSE 350
4,459.02
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FTSE All-Share
4,417.25
16:54 14/11/24
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Micro Focus International
532.00p
16:40 30/01/23
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Software & Computer Services
2,485.46
16:38 14/11/24
0.92%
22.57
The offering is £5.32 per share, a 98% premium on Micro Focus’s current share price, which has fallen 87% over the past three years.
The FTSE 250 group provides IT services for business IT issued major profit warnings in 2018 and 2019.
Micro Focus has debts of $4.4bn. OpenText said it would fund the deal by raising $4.6bn in new debt, $1.3bn in cash, and $600m from its existing revolving credit facility.
Nasdaq-listed OpenText is one of the world's largest software providers and is used by thousands of corporate clients. It is valued at $13bn and has 14,800 employees in 35 countries.
Reporting by Frank Prenesti at Sharecast.com